RBI rate cut: Godrej Properties, DLF, Sobha, Prestige Estates, shares rise in early deals
Shares of real estate firms such as Godrej Properties, Sunteck Realty, DLF, Sobha Limited, Prestige Estates, and Signature Global gained up to 3% on BSE today after the RBI cut the policy repo rate for 3rd time. The top bank reduced its lending rate to 5.5% with immediate effect by 50 basis points. The bank changed its posture from 'accommodative' to 'neutral'.
Sunteck Realty stock rose 3%, Oberoi Realty (2.2 %) and DLF (1.68 %) on BSE. The realty index of BSE rose 2.5% to 7,800 points when it is compared to the previous time close of 7704. The Housing finance shares rallied with LIC Housing Finance and PNB Housing Finance gaining 2.1%.
The Realty shares rose fast with the hopes that banks would carry the RBI rate cut to all the lenders. It will result in the lowering of the interest on all home loans. The real estate developers expect this would lead to an increase in sales in both their residential and commercial projects.
Anarock, which is one of the famous real estate services firms, said that the rate cut will make the home loan EMI process easier. It will improve the affordability for buyers. They are now expecting an increase in the sales of affordable and mid-income segments. The Affordable housing share fell in the year 2019 from 38% to 18% in the last year 2024.
The decrease in the CRR rate by 100 bps will help the real estate developers to get good capital access from the banks. But, it sees a good positive impact of the rate cut being annulled by the ongoing global trade tensions.
The CEO of Emaar India said, “The policy shift will support both buyers and the real estate developers. It will enable a better environment for all the ongoing projects through enhanced capital access. Also, the CRR cut will enhance liquidity access.
It will foster strong growth in the real estate industry. The reduced rate on home loans is beneficial for first-time buyers. It will surely result in strong demand for affordable housing."
Godrej Properties pre launch new project is Godrej Regal Pavilion
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