tradingview.com-Long-struggling affordable housing segment sees ray of hope after RBI cuts key policy rate
After a prolonged period of sales decline and low levels of supply, sales in the affordable housing segment may see a new lease of life after the Reserve Bank of India (RBI) cut its key repo rate by 25 basis points to 6.25 percent, paving the way for lower interest rates on home loans. The downside, however, remains in the form of a continued increase in home prices across all markets, with inflation continuing to be on the higher end, observers noted.
"I believe that this move will have a positive impact on the affordable housing segment, which is a priority area for the government. With lower interest rates, more homebuyers will be able to afford homes, leading to increased sales and improved liquidity for developers. This, in turn, will encourage developers to launch more affordable housing projects, addressing the huge demand-supply gap in this segment," said G Hari Babu, national president, National Real Estate Development Council (NAREDCO).
