Housing players laud rate cut, seek adequate transmission
Real estate developers welcomed the Reserve Bank's 25 basis points (bps) repo rate cut on Friday saying that the consecutive rate cuts would boost demand for the long-subdued sector.
Developers, who have been in the midst of a liquidity crunch over the last one year, however, said that the swifter and considerable transmission is required for an actual impact of the rate cuts. This is the fifth consecutive rate cut by the central bank.
Anuj Puri, Chairman of Anarock Property Consultants said: "The repo rate cut of 25 bps announced today is in line with expectations. It can probably go some way in improving consumer sentiments ahead of the festive season, which is a crucial quarter for the real estate sales."
"However, much depends on how efficiently banks transmit the benefits to their homebuying borrowers.