Markets were expecting a more accommodative stance with 50 bps rate cut: Amit B Wadhwani, Sai Estate Consultants Chembur Pvt Limited
The second consecutive repo rate cut from the RBI is in lines with the expectations, although markets were expecting a more accommodative stance with 50 bps rate cut.There have been many meaningful interventions by the government and regulator which has provided positive boost to the buying sentiment amongst the home buyers. The real estate residential sector better sentiment growth concurs with improved sentiment in overall business sentiment in the country. Besides OMO, the added focus on currency swap will provide the required easing in the transmitting benefits of the rate cut and also emanating into improving liquidity in the sector. With short term food inflation expected to be benign, the possible seasonal related inflation reversal after monsoon will be a guidance of MPC to go for next rate cut in the month of August.
RBI rate cut will push up the consumption demand: Ashok Mohanani, EKTA World / NAREDCO Maharashtra
The rate-cut and monetary announcement by the RBI has come down to 6% for the second consecutive time in 2019 after a surprise rate cut in the month of February 2019. This certainly is an expected move to achieve higher availability of funds and to ensure additional liquidity is infused into the overall sectors. This decision is in consonance with the aim of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent while supporting growth. The movement has boosted the sentiment that has recently proposed budgetary reforms and revised GST rates, will see a further improvement and convert fence-sitters into purchasers. This move is also very beneficial for the potential buyers. A rate cut by RBI will help push up the consumption demand in the country due to a boost in sentiment. We look forward to seeing a sharp rise in sales and demand and a significant drop in unsold inventory by the end of 2019.
A relief for the real estate industry: José Braganza, B&F Ventures
The decision of reducing the Repo Rate rate to 6% will be a relief for the real estate industry as there will be more liquidity due to the lower marginal cost of fund based lending rates. Further, the lower EMI’s on loans which are likely to come down, will make the property affordable and will attract potential buyers. This is a positive change and it will give a boost to the lately languishing real estate sector.
A positive development for the real estate sector: Ramesh Ranganathan, Bombay Realty.
RBI’s revision in Repo rate to 6% is a good thing to have happened – a positive development for the real estate sector. This move will ease liquidity and leave more money in the hands of home buyers. It could not have been better timing – Bombay Realty recently received occupation certificate for the Island City Centre project in Dadar East.
A big sentiment booster for affordable housing: Deo Shankar Tripathi, Aadhar Housing Finance
Highly encouraging monetary policy. The decision to cut Repo Rate by 25 bps second time in last 2 months is now expected to trigger rate reduction by banks. Home loans will be slightly cheaper but it’s a big sentiment booster for affordable housing. RBI has allowed banks to use additional 2% from SLR bucket which will support liquidity. Housing Finance Companies(HFCs) expect easing in lending from banks; committee is being setup for securitization market. Both these decisions are big positives for HFCs which will bring back affordable housing growth on track. Overall policy is aimed to strengthen domestic consumption and growth of economy.