Surabhi Arora, Associate Director, Research, Colliers International
The substantial reduction in inflation in last few months pave the way for RBI to cut repo rate in recent monetary policy review. This is the third policy rate cut in last five months, where the central bank had cut the rates by 75 basis points cumulatively. In last few months, a number of banks like ICICI, SBI, Axis Bank and HDFC had reduced their landing rate in the range of 15 to 25 basis points for home loan so far. With further reduction in policy rates we can expect further rate cut for home loans from banks in coming months. There is an overall increase in market momentum in terms of commercial leasing, employment, etc. but the residential market has still not picked up to its earlier level. The rate cut will help to reduce the overall burden for the residential buyers and may boost residential sales across the markets.