Impact of Monetary Policies on Real Estate
In the last couple of years, there have been a number of economic reforms that have been incorporated in the country, slowly but drastically changing the overall economic scenario. The real estate industry too, has undergone significant changes in these past few years, prompting top developers to come up with new age, modern properties.
The recent measures undertaken by the Reserve Bank of India’s Monetary Policy Committee has cast an impact on the country’s real estate industry, the most notable one being revision of the REPO rate. In case of any shortfall of funds, the central bank lends money to commercial banks at a stipulated rate, known as the REPO rate.
According to the recent monetary policy revisions, the REPO rate has been reduced by 35 base points to 5.4%. This rate cut has been seen as a big sigh of relief in the real estate market, as banks will now be able to offer home loans at a subsequently lower interest rate. The best part? These affordable loans have prompted a renewed interest in residential investments.
In the past few years, with an aim to proliferate long-term economic growth, several economic reforms have been incorporated, such GST, demonetization and the initiation of RERA. However today, people are still somehow adjusting the way they spend. Despite the recent trend of increasing interest rates and inflating prices, the RBI’s monetary decisions are like a breath of fresh air, presenting new investment opportunities for homebuyers. They can now make the most of upcoming festive offers coupled with rewarding home loan rates.
Overall, these policy changes have resulted in a positive impact on the real estate sector, especially for new homebuyers. As a homebuyer, one of your first few priorities is affordability and keeping that in mind, House of Hiranandani launches self-sufficient, luxurious residential projects in Chennai and residential projects in Bangalore that cater to all family sizes and budgets. It is a great time to invest in residential properties – make the most of new policy changes and tax benefits and find yourself a beautiful, cozy home.