Bengaluru-based real estate developer Sanjeevini Group Chairman and Founder, Umesh Gowda H.A:
Home loan interest rates have dropped below 8% in some banks which is a good sign of timely transmission of two repo rate cuts by the RBI. We expect another 25bps cut in repo rate and hope that more banks quickly pass on the benefit to borrowers. This will provide a much-needed relief to not just existing homebuyers in the form of reduced EMI but also those who have been postponing their decision to buy a home. Real estate sales have been steady and a decline in interest rates will also benefit developers in the form of reduced financing expenses thereby translating into improvement in project viability and cheaper working capital.
Mr. Garvit Tiwari, Director & Co-Founder, InfraMantra, Gurugram based property consulting firm:
The RBI has initiated two interest rate cuts in 2025. With record low inflation and stable economic growth, another 25-bps cut is imminent as the apex bank will look to stimulate growth by making lending affordable for businesses and consumers. The three consecutive quarters of sub-1 lakh unit launches in top 9 cities and sales declining by 19% in Q1 point to some prevailing caution on the part of both developers and homebuyers. A cut in interest rate will give a spur to housing demand and encourage new entrants to make real estate purchases.
Mr. Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focussed Alternative Investment Fund (AIF)
Interest on fixed deposits by banks have seen a continuous decline with RBI’s cut in repo rate thereby disincentivizing depositors. Investors have been drifting from stock market and traditional real estate investments due to rising volatility and rising property prices. In such a scenario, those looking to earn good returns, and have real estate in their portfolio can look at alternative investments like AIFs which are regulated by SEBI, provides diversification across properties and geographies, are professionally managed, require relatively smaller investment and have tax advantages.