RBI Rate Cut to Boost Affordable Housing & Real Estate

RBI cuts repo rate by 25 bps to 6.25% after five years! This move is set to boost affordable housing, making home loans cheaper and increasing real estate demand.

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Lower interest rates will improve housing affordability, enabling more buyers to own homes. Developers will also benefit with better liquidity and increased project launches.

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Real estate leaders say the cut will stimulate demand, especially for first-time buyers. Commercial real estate may also see growth with reduced borrowing costs.

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Experts highlight that luxury housing sales are soaring, but India still faces a 10.1M affordable housing shortfall. The rate cut may ease this gap over time.

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Tax breaks for incomes up to ₹12 lakh, coupled with cheaper home loans, will further encourage homeownership. More policies may be needed to help low-income buyers.

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Despite the rate cut, many urban poor may struggle to qualify for institutional credit. More targeted measures are required to bridge the affordability gap.

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