How many of us were happy when the Reserve Bank of India (RBI) announced the rate cut on home loans? Although the rate cut was minimal, it brought about a new ray of hope to the troubled economy of our country. The real estate sector was given an opportunity to sigh a sense of relief and the common man was given a chance to reconsider the thought of buying a house. It is expected that a lot of leading banks will follow suit and cut down the interest rates for home loans.
Are you aspiring to own a house? If yes, then this is the right time to go ahead and purchase one. It is good news to people that many property consultants have seen the RBIs decision to cut key policy rates as a positive sign to encounter high demands in the real estate sector. The real estate space is on the verge of gaining back its comfort and stability in the industry. Sending out positive ideas and signals to investors worldwide, the rate cut is a policy measure that is going to play a crucial and pivotal role in the betterment of a lot of economical aspects.
Changes that can be predicted in the real estate sector
It is of course great news for each and every individual property buyer in India. The rate cuts provided for home loans by RBI is welcomed by most of the individuals in the real estate sector as well. With the relaxation of such key policy rates which has taken place after a long time span, there are certain changes and developments that can take place in the near future. Some of them are:
* The slowing Indian economy can expect to revive and see a bright future. The annual growth rate can also be expected to see slight stability.
* Home buyers have greater possibilities to get motivated and do their home purchase in the near future.
* Real estate developers and builders can hope to create a balance that was previously hindered by inflation seen in almost all industries.
* Other banks may be encouraged to reduce their own base rates which in turn can benefit a lot of home buyers and developers.
* Reduction of interest rates can automatically instill confidence to those in the real estate sector to perform better and help in the growth of the economy.
* Increase in investments proves to enhance and gradually improve the liquidity in many banking sectors in India.
* Home loan availability will become adequate in the market which can attract a lot of investors.
* A guaranteed boost for the sentiments of home buyers and creating opportunities for more real estate sector activities.
* Apart from being the sole reason for providing relief to individual home buyers, this move can help in the task of stopping the dramatic aspect of price escalation.
The last three to four quarters have seen a considerable lag with respect to home sales. The 25 basis points cut in the Repo rate by the RBI can alter this situation. Though the reduction of interest rates on home loans can differ from one bank to another, home buyers can look forward to see a positive reduction. Lots of excitement and cheer engulfs the lives of those who have dreamt to buy a home at affordable interest rates.