As it is seen as one of the biggest factors that can trigger growth of India’s real estate segment, India’s finance minister, Arun Jaitley has called for a reduction in interest rates, saying lower rates would trigger demand for homes in the country.
In its present state, the interest rates are a disincentive as seen by many real estate experts. And especially at a time when inflation in the country, seems to be stabilizing, a move to reduce interest rates for home loans could surely trigger much needed growth in this segment.
On the other hand, the Reserve Bank of India, which has kept rates unchanged, has maintained that despite recent moderation, inflation remains a challenge in the country.
Experts also believe that a move in the direction of reducing interest rates cloud act as a big proponent in terms of creating the much needed investment friendly atmosphere where customers will feel encouraged towards making their investment decisions in an easier manner.
And on the builder side of things, this would mean better chances of relieving their inventories and creating space for more projects. Whether it is Delhi, NCR or Mumbai, Chennai or Bangalore, a decision towards reducing bank’s interest rates will surely drive a wave of prosperity and contentment for the real estate sector.
In such a scenario, it will create an ideal situation for buying property and creating long term wealth for individuals.