‘Repo rate cut to provide growth stimulus; housing demand to soar’

"Monetary Policy Committee (MPC) has reinforced its intent to provide growth stimulus by the second consecutive reduction in repo rate by 25 basis points (bps). This will provide the much need stimulus to the economy that has witnessed some moderation in the pace of growth. It will also boost investments which have off late shown green shoots of recovery. The uncertainty on crude oil price movement, likely effect of EL Nino and slowdown in global growth has prompted MPC to take a more cautious stance.

Today's rate cut of 25 bps is a continued series of stimulus that is propelling the real estate sector on a new growth trajectory in 2019. The Union Budget incentives for affordable housing and the recent reduction in Goods and Service Tax rates along with a reduction in repo rates to 6% will boost demand for housing. The various fiscal concessions announced before, coupled with lower interest rates is the best time for a homebuyer to book their dream home.

JLL's recent affordability study- "JLL Home Purchase Affordability Index" indicates that reducing trend of mortgage rates, steady income growth and stable residential prices have led to a significant improvement in affordability in the last five years."