RBI rate cut may boost demand for real estate
The rise in demand will be mainly in tier II and tier III cities where prices are still affordable, say analysts
New Delhi: The Reserve Bank of India’s (RBI’s) monetary easing could prompt a rise in real estate demand, leading to prices firming up after having dropped around 4% in the recent past, said R.V. Verma, chairman and managing director of National Housing Bank (NHB), the regulator for housing finance firms.
Builders with unsold stock may raise home prices, Verma said on Thursday.
Industry experts said prices are likely to rise in some areas.
“In markets like National Capital Region (NCR) or Mumbai, there have been fewer launches, but pricing has not taken that much of a hit. Prices have been stable or have seen a marginal increase," said Neeraj Bansal, director, real estate, KPMG. “However, in other parts, where demand has gone down significantly, the developers have been offering good discounts on available prices for ready properties."
The industry also expects the budget will contain steps that will boost the industry.
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