CHENNAI: The Confederation of Real Estate Developers' Associations of India (CREDAI) Tamil Nadu welcomed the Reserve Bank of India's (RBI) decision to reduce the repo rate and opined that the move will invigorate the economy.

WS Habib, president of CREDAI Tamil Nadu said that the reduction of the repo rate to 5.5 per cent, coupled with the CRR (Cash Reserve Ratio) cut to 3 per cent, is anticipated to lower borrowing costs and enhance credit availability.

“This move is particularly significant for the real estate sector, as it is expected to make home loans more affordable, thereby boosting demand, especially in the affordable and mid-income housing segments,” he added.

However, the effectiveness of these measures hinges upon the prompt transmission of rate cuts by banks to end consumers. “We urge all banking institutions to swiftly adjust their lending rates to reflect the RBI's policy changes, ensuring that the intended benefits reach homebuyers and stimulate the housing market,” he added.