Welcoming the 0.25 per cent rate cut by two of the biggest home loan financiers SBI and HDFC, realty sector participants on Friday said the move will help revive interest in the gloomy market.
"This is a positive move to boost property sales and spur industry growth. Home buyers who were earlier waiting for rates to come down will now certainly look at buying their dream homes," industry body Confederation of Real Estate Developers Association of India (Credai) Chairman Lalit Kumar Jain said.
"The home loan rate cuts from certain banks have occurred after nearly a year, and will augur well for investment sentiments in the market," property consultant CBRE South Asia's Chairman and Managing Director Anshuman Magazine said.
It may be noted that the residential sector had suffered a major set back due to increasing home loan rates, which had forced buyers to postpone their home buying decision.
Magazine also welcomed Reserve Bank's move to hold on to its key rates despite the high inflation, which resulted in the rate cut announcement by SBI and HDFC last evening. He said the move is a positive signal for the investment climate.