RBI rate hike pause will infuse positive sentiments among home buyers

Home loan is an important factor and it drives the real estate market and increasing and decreasing repo rate of course affects the market every now and then. As every individual wishes to fulfill his or her life’s first and foremost dream of buying a property, a high home loan interest rate, for sure, comes as a big constraint or a big stress. Since the money they borrow from the bank as home loan is almost double or more they pay back to the bank for what they sacrifice or compromise with the situation.

Especially in big cities like Gurugram, Noida, Ghaziabad, Faridabad and others where the land prices are high and so is the case with the construction cost and the two factors propel escalation of property prices for end users who have no choice but to avail eighty to ninety percent home loans at high repo rate which is unavoidable.?????

In that way, the recent move or decision of the Reserve Bank of India (RBI) to pause interest rates hike is a well thought step as it will boost and accelerate the economy as the move will appear as a big relief to home buyers in terms of paying back their home loans. The repo rate is the rate of interest at which the RBI lends money to commercial banks. As a real estate promoter, we appreciate the move of the RBI, as this act will help home buyers to take benefit of the move to avail home loan to fulfill their dream of having a property at the earliest. The RBI move would, indeed, have a positive effect on home loan borrowers. We believe this will provide stability and encourage banks to lend home loans to consumers, which will result in a higher credit flow to the real estate that further will boost housing demand and supply in the real estate market.

We strongly believe RBI’s move will encourage mid-segment prospective property buyers in a big way, as they would now avail home loans to buy property unlike before.?We believe the Central Bank’s aim is to encourage banks to offer home loans to home buyers for which it has given an incentive by putting a pause on a rate hike for a while. And the move has come at a time when the state governments and Centre have been encouraging home buyers to avail housing schemes across the country.?Besides relief for the home buyers, we believe this will infuse positive sentiments among home buyers and it will also accelerate the overall growth in the real estate sector by bringing revenue to the government after two years of the pandemic period that hit the mid-segment buyers as well as the economy, badly.