By-Shishir Baijal, Chairman and Managing Director, Knight Frank India
The RBI’s 50 bps rate cut marks a strong and proactive stance aimed at lifting the low and mid value housing segments. Over the last few years, the strong housing market momentum was increasingly concentrating in the premium end even as there were signals of weakening the lower segments. With this cumulative 100 basis point cut in the policy interest rate we expect rekindling of the lower segments as affordability will witness a meaningful improvement for such homebuyers. We hope that the developer community too renews its focus in a big way to give longer legs to this housing market upcycle which is in its 5th year. Liquidity conditions remain balanced and conducive to supporting this monetary stance and we hope to see a greater transmission of this rate cycle.
– Your Life Coach
