The recent RBI rate cut of 25 basis points was a welcome move for real estate developers as this change will lead to a boost in sales during the festive season. On the other hand, experts caution that this increase is only a minor improvement in homebuyer sentiment.
Does this mean that home loans will now be cheaper? If banks pass on the benefits of the rate cut to buyers only then home loan EMIs will get cheaper. Speaking on this change, Vineet Relia, Managing Director, SARE Homes says, “[This] will infuse confidence in the system, thereby providing a boost to not only the real estate sector, but the overall economy ahead of the festive season as well.”
With this move, home loan EMIs are likely to get lighter on the pocket and may help boost homebuyers’ confidence this festive season.
This is the second rate cut this year, and falling inflation is the main reason for the move. What are your thoughts about the rate cut?