Realtors Welcome Rate Cut; Seek More Reduction To Boost Sector

New Delhi: Welcoming the RBI decision to cut key policy rates by 0.25 per cent, the real estate sector said there is a need for further reduction so that the interest cost to builders and home buyers falls considerably.

"We sincerely hope that the RBI will keep up the trend of repo rate cut and facilitate a fall in interest rates so that EMI burden on common house buyer gets reduced considerably," Confederation of Real Estate Developers' Associations of India (CREDAI) Chairman Lalit Kumar Jain said in a statement.

CREDAI has over 10,000 members across the country. The Reserve Bank today cut the short-term lending rate, or repo, by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged.

Country's largest realty firm DLF said that the rate cut was "too little" to boost realty sector as well as economy.

Commenting on the policy, DLF Group Executive Director Rajeev Talwar said: "The rate cut is too little to give economy a boost. There is a need for further reduction".

However, he said that if the banks and housing finance companies pass on the rate cut to consumers, it would have a positive impact on the sector.