Mr. Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory
“The reduction in home loan rates by leading banks is going to help the demand side immensely. Currently, the all-time low, sub-7% interest rates are encouraging consumers to proceed with their purchase and quickly close their transactions. Low interest rates also help enhance eligibility for home buyers thereby bringing more customers into the marketplace.
We have been maintaining since quite some time that banks need to pass on the benefits of the reduced repo rates to consumers and we are happy to see the same happen now. The real estate sector has benefited immensely from the record low home loan rates, apart from the temporary reduction in stamp duty charges in key states. A low interest rate regime is bound to catapult unimaginable, economic growth in the country as a result of enhanced consumption. The low interest rates coupled with negligible or nil transaction cost will augur well for ready-to-move-in homes and the affordable housing industry. Both of these categories will benefit immensely from the reduced rates.”