Rate cuts will boost housing sector demand
Experts say that the present slowdown in the economy can be turned to a projected growth with a revival in the real estate sector.
When India’s economic growth had slowed down to 6.7 per cent in 2008-09 from 9.3 per cent in the previous year, the revival of the real estate sector with a growth in affordable housing segment led to a turnaround in the economy, which saw a growth rate of 8.4 per cent in 2009-10.
As the home loans given are backed by solid collaterals, the chances of default by borrowers are very low. If home loan interest rate is brought down to 7% from 10%, an individual’s borrowing capacity will increase.
Getamber Anand, officiating president of Credai, NCR, said that an interest rate cut will trigger a boom in the real estate market and is much needed to support this sector.
Affordable housing segment, CREDAI, Economy, economy slowdown, home loan, Home Loan Interest rate, Home loans, Loan, Loans, Real Estate India, Real Estate Sector, Realty News, solid collaterals, the Confederation of Real Estate Developers Associations of India
[...] Rate cuts will boost housing sector demand Related articles [...]