Builder sentiment for Chennai real estate market.

Q: Now a days builders are more prominent towards real estate market due to current rate cut.

Javed, Chennai

23rd January 2015

Real estate News in Chennai

home loan

rbi

credai

chennai real estate

property buying in chennai

chennai investment advice

rate cut issue in realestate

Follow Discussion

Also see discussions for

Chennai Real estate News Real estate News in Chennai

Replies (4)

I would suggest you should see the graph which shows the growth of property prices over a period of time, House of hiranandani has build flats from 30L to 1.5 cr so its a varied market. So of builders like Hira are having a development plan in these locations, that shows the realty sector is going to boom. Also see that the new government will also have a positive impact on reality sector.

Max Jones,

29th January 2015

Comment

Hi Mr JAved,
In the next three months, there may be yet another rate cut and in the next one year, we expect home loan interest rate to go down by 100 basis points (1%). In the backdrop of a fall in oil prices and low inflation rate, this is a good strategy by RBI to push the market. However, for the real estate sector to boom, employment generation also has to pick up . Clubbed with the rate cut, the plummeting global fuel prices would also push Asian real estate markets.

Shyam Sundar, Chennai

23rd January 2015

Comment

@ Javed,

In my point of view , the logic is simple; Four out of top five oil importing nations are in Asia Pacific and a decline in energy price supports industrial output. Oil prices have more than halved since June 2014 and, for the first time since 2009, Brent crude oil dipped below US$50 a barrel. And unlike the 2009 price crash, which was driven primarily by a dip in demand, the price fall in recent months is a result of increasing supply.

Srinivas , Chennai

24th January 2015

Hi Guys,

As per CREDAI (Chennai), RBI's rate cut would ease the burden on buyers as well as developers. The rate cut was long overdue in view of low inflation and poor domestic demand. Home buyers were adopting a wait and watch policy .
The housing shortage, which is 18.7 million units now, is expected to touch 60 million by 2030, going by the present pace of development. However, much can be achieved if private players are also involved in central government's 'housing for all by 2022' mission.

Priya Sharma, Chennai

23rd January 2015

Comment

@ Javed,

In my point of view, even though the cut in interest rate is only nominal, it will have a positive impact on people who have been deferring decision on buying homes. Indications are that the Union government and RBI will announce more such measures to boost the housing sector.

Ananth KV, Chennai

23rd January 2015

Hi Javed,
As per my knowledge, a positive sentiment has seeped into the Chennai Real Estate Market. Builders are hopeful of speedy revival of real estate market following Reserve Bank of India's decision to cut its key policy rate by 25 basis points on January 15. There is a spirit of optimism especially after the new government took over the reigns at the centre.

VKumar, Chennai

23rd January 2015

Comment

@ Javed,
United Bank of India and Union Bank of India have already slashed housing loan rates by a quarter percentage to 10%, and builders are hopeful that more would follow suit. A 25 basis point cut in home loan rate translates to a drop in EMI by Rs 842 on a Rs 50 lakh loan with a tenure of 20 years.

Ravi Kumar, Chennai

23rd January 2015