changes-in-repo-rate-in-real-estate-sector

Recently, RBI cuts Repo Rate, for real estate sector in India, A good sign…!!

A great news for the real estate sector indeed!

The Reserve Bank of India (RBI) has reduced the Repo Rate by 25 basis points, bringing it down from 6.25 percent to 6 percent.

This means the loans are going to be cheaper and real estate sector is going to be more affordable than ever.


The RBI has reduced the key lending rates for the second time consecutively for this quarter. This simply shows the apex bank’s keenness to enhance liquidity in the market and propel growth. The reserve repo rate has been slashed down from 6 percent to 5.75 percent. This means, banks will have more cash available to distribute as loans.


The reduction in repo rate is directly related to reduction in EMIs on home loans. A home loan borrower, for instance, will get a relief of over Rs 500 on a home loan of Rs 30 lakh for a period of 20 years. This means one can expect a benefit of Rs 150-170 per lakh of loan availed of for a tenure of 20 years.


“The commercial real estate sector too will be positively impacted as there will be more liquidity in the market and it will be easier for investors to organise resources for the purchases,” said Ashish Bhutani, CEOBhutani Group, reacting on the development.

changes-in-repo-rate-in-real-estate-sector-in-india


Recently, the Asian Development Bank (ADB) released the GDP growth forecast for India at 7.2 percent, for the current fiscal year 2018-19. However, in order to sustain growth above 7 percent, it is paramount for the banking sector to ensure sufficient liquidity in the market.

The current move from the RBI is very much in line with the growth aspirations of the country.The residential real estate sector in India is too capital intensive.


The real estate and construction sector is the second largest employer in the country, next only to agriculture. If this sector picks up, the whole economy of the country gets benefited. “The commercial real estate sector too picks up in tandem as businesses get better credit environment for expansion,” he added.


Bhutani Group has been enjoying tremendous response for its flagship projects Alphathum and Cyberthum in the Noida Expressway belt. The projects have got investors from across the world and there has been a sustained demand for the properties developed by the Group.