Interest Rate Cut Fails To Trigger Home Buying

For instance, “The most popular offer is the 80-20 scheme, where the buyer can book his property by paying just 20 per cent of the value of the house,” said Ramesh Nair, Managing Director (West India) at Jones Lang LaSalle's (JLL), reports Business Standard.

Nair further added that “The property price is more important than interest rates. If interest goes up, the borrower will have to pay more and if to goes down, he will save. But it is price that the borrower is getting married to. If you are happy with the price then you must go ahead and buy the property. Not otherwise.” He also said that home buyers are holding their buying decision until developers reduce the property prices and make home buying affordable. Therefore, the interest rate cut  may not help buyers at large.

According to R K Bansal, Executive Director, IDBI Bank, the maximum business that produce around 65 to 70 percent takes place during the period of October to March then April-September period. He further said that “Since there is a slowdown this year, overall loan sanctions are lower. Besides real estate prices are up. But in terms of percentage the share of loans sanctioned during the festival period may remain the same,”