As the Reserve Bank of India has announced its interest rate cut, the move is likely to considerably drive demand for the housing sector in India.
Taking a cue from the softening of inflation in the country, the Reserve Bank of India has decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent. This is seen as a landmark move which is likely to further encourage the reality market in India.
And most importantly, this is also set to boost the sentiments in the real estate segment. On the other hand, the industry has put forward its demand to further reduce the interest rate slabs for securing housing loans in India.
This move is also seen as a great sign of hope and relief for the real estate industry which is already reeling under a lot of pressure today. As expressed by many experts in this industry, this announcement will surely increase the consumer confidence level, not only in big cities but also in smaller locations of the country and create a favorable atmosphere for real estate to prosper and grow further.
Additionally, RBI is also expected to reduce in mortgage rates and this can further improve residential sales across the country, helping consumers find the right property, in the right budget.
It is important to note that according to a recent market report, the sales of housing in India fell to 1.75 lakh units in the primary markets of seven major cities in 2014 against nearly 2 lakh units in the previous year because of the slow demand being experienced in the market.