With the Reserve Bank of India (RBI) cutting down the lending rate by 0.25 per cent, real estate in Ludhiana is hopeful that it could witness an upsurge in the coming days.
RBI announced the cut in repo rate on Thursday morning after which property dealers as well as experts in the real estate claimed that the real estate sector would get a boom. Real estate in Ludhiana and elsewhere was witnessing a slump. High housing loan interest is also considered to be one reason behind it.
Although the real estate believes that there were several other factors that were causing hindrance in the forward march of the real estate in the city. With many townships, including those of national repute coming to the city, there has been little or no change in the mindset of the residents who were still shying away from buying properties due to different reasons.
Deepak Pandey, a real estate expert, said, "Home loans are likely to come down after the announcement of RBI. End users will benefit if the home loans come down in the coming time. It is good news for the real estate in Ludhiana that could get a boost with the decision."
On the other hand even the real estate agents in the city were now hopeful that they would receive a hike in business within the coming days. "Although that there has been a cut in lending rates by RBI, but there are other issues that need to be addressed. The central government should look into these issues. However, home loans are likely to come down soon," said Inder Mohan Singh, a real estate agent at BRS Nagar.
Meanwhile, some in the real estate believe that there was still a lot to be done for betterment of the real estate. Hemant Gupta, head sales at a township on Ferozepur road, said there were other complications in the real estate that also need to be addressed. "Property rates are too high due to different taxes and a small decline in home loan will not benefit the buyers," said Gupta.