Repo rate cut, new GST rates to drive home sales in Q1 FY20

New Delhi: The Indian real estate sector is likely to witness a much-needed uptick in demand and sales during the first quarter of the financial year 2019-20, according to experts and developers, on the back of recent changes in the Goods and Services Tax (GST) rate for the sector and the latest reduction in repo rate.

This hope comes despite the initial apprehensions regarding pick up in sales during the coming Lok Sabha elections due to uncertainty of policy continuation. But a slew of policy decisions in the past couple of months, just ahead of the elections, have given clarity and relief for both the developers and home buyers.

"The Reserve Bank of India (RBI) on its part has been proactive on slashing lending rates. However, the onus is now on banks to ensure that there is a stronger transmission of these rate cuts.

Once this happens, it is likely to encourage fence-sitting consumers to undertake buying decisions, thereby providing a fillip to the residential sector," said Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.

The RBI in its latest monetary policy meeting on Thursday reduced repo rate, the rate at which it lends the banks, by 25 basis points (bps) to 6 per cent.