Realty developers and property consultants have hailed the Reserve Bank’s decision to cut key policy rates, saying that it is a positive step that would boost housing demand and encourage foreign investment in the sector.
The Reserve Bank of India’s (RBI) recently cut short-term lending rate, called repo rate, by 0.25 per cent to 7.75 per cent and cash reserve ratio (CRR) by a similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system.
Developers and consultants expect the move would lead to reduction in interest rates for buyers as well as builders. Commenting on the development, Unitech Managing Director Sanjay Chandra said that this is a small but necessary positive move to boost investment as well as demand in the real estate sector.
These growth oriented monetary measures combined with the government’s fiscal measures should augur well for the industry in 2013. Global realty consultant Jones Lang LaSalle (JLL) India said RBI has shown commitment to improve liquidity in a cash-strapped economy by reducing the policy rates.