Hyd’s realty gloom over repo rate decision

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RBI’s decision to keep the repo rate unchanged in times of demonetization triggered gloom to Hyderabad’s realty market.

For a market driven by the end-user, a cut in repo rate is required to pump up property sales, say real estate experts, unhappy with RBI’s decision. “A cut in repo rate would have led to a slash in home loan rates and ensured spurt in sales, something that Hyderabad, an emerging real estate destination needs now,“ said Suraj Prasad Agarwal, chairman, Annapurana Builders Group of Companies.

Repo rate is the rate at which RBI lends money to commercial banks.Reiterating that a cut would have raised the “purchasing power of home buyers“, S Ram Reddy , president of Confederation of Real Estate Developers Association of India, Hyderabad, said, “It would have encouraged more people to think of real estate as an investment option as against fixed deposits or other schemes.“ He however, was hopeful of a revision in RBI’s decision early next year.

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