RBI rate cut to boost real estate market in capital | Bhubaneswar News
Bhubaneswar: Homebuyers and realtors welcomed the Reserve Bank of India (RBI) decision to cut repo rate by 25 basis points, saying it will not only help homebuyers with home loans becoming cheaper, but will also ensure that real estate sales remain on track.
Bhubaneswar, which is experiencing rapid development in the luxury real estate sector, will particularly benefit from the decision as the sale of high-end apartments will continue without hindrance, according to industry experts.
“The reduction in the repo rate is a welcome move for real estate. This decrease will lead to lower borrowing costs, making it easier for homebuyers to take loans, which in turn will boost demand for housing,” Siddharth Sekhar Mohapatra, managing director of a leading real estate firm, said.
He said that as builders, they expect this move to stimulate growth in the industry, enabling them to deliver more projects and create quality housing options for homebuyers. “This decision will definitely fuel the growth of real estate, especially in cities like Bhubaneswar,” Mohapatra added.
This is the second time the RBI has made such a move in this calendar year. The repo rate now stands at 6%, down from 6.5% at the beginning of the year.
Reacting to the development, Ashish Kukreja, the chief executive and founder of a leading real estate firm, said the repo rate reduction is a massive relief for homebuyers. “This is the second rate cut this year, following a 25 basis points cut in Feb. The repo rate reduction to 6% lowers the cost of funds for banks, enabling them to pass on the benefit to consumers through lending rates,” Kukreja highlighted.
Analysts explained that if a borrower has a home loan of Rs 80 lakh with a tenure of 20 years at an interest rate of 9%, the EMI will be around Rs 71,978. With a 50 basis point reduction passed on by banks, the new EMI would be around Rs 69,426.
“This reduction will result in savings of Rs 2,552 every month and about Rs 30,624 annually. Over the loan term, this could lead to more than Rs 6.42 lakh in relief. While new borrowers may see the impact more immediately, existing borrowers will benefit from their next loan reset date,” Kukreja said.
Ashis Saila, a prospective homebuyer looking to book a flat, said he was right to wait. “I had no idea about this repo rate, but one of my friends suggested I wait before taking a home loan. I think this is the right time,” Saila said.
Bhubaneswar, which is experiencing rapid development in the luxury real estate sector, will particularly benefit from the decision as the sale of high-end apartments will continue without hindrance, according to industry experts.
“The reduction in the repo rate is a welcome move for real estate. This decrease will lead to lower borrowing costs, making it easier for homebuyers to take loans, which in turn will boost demand for housing,” Siddharth Sekhar Mohapatra, managing director of a leading real estate firm, said.
He said that as builders, they expect this move to stimulate growth in the industry, enabling them to deliver more projects and create quality housing options for homebuyers. “This decision will definitely fuel the growth of real estate, especially in cities like Bhubaneswar,” Mohapatra added.
This is the second time the RBI has made such a move in this calendar year. The repo rate now stands at 6%, down from 6.5% at the beginning of the year.
Reacting to the development, Ashish Kukreja, the chief executive and founder of a leading real estate firm, said the repo rate reduction is a massive relief for homebuyers. “This is the second rate cut this year, following a 25 basis points cut in Feb. The repo rate reduction to 6% lowers the cost of funds for banks, enabling them to pass on the benefit to consumers through lending rates,” Kukreja highlighted.
Analysts explained that if a borrower has a home loan of Rs 80 lakh with a tenure of 20 years at an interest rate of 9%, the EMI will be around Rs 71,978. With a 50 basis point reduction passed on by banks, the new EMI would be around Rs 69,426.
“This reduction will result in savings of Rs 2,552 every month and about Rs 30,624 annually. Over the loan term, this could lead to more than Rs 6.42 lakh in relief. While new borrowers may see the impact more immediately, existing borrowers will benefit from their next loan reset date,” Kukreja said.
Ashis Saila, a prospective homebuyer looking to book a flat, said he was right to wait. “I had no idea about this repo rate, but one of my friends suggested I wait before taking a home loan. I think this is the right time,” Saila said.
