By Piyush Gupta, Managing Director, Capital Markets, India at Colliers International
“Reduction of Repo rate by further 40 bps will reduce cost of borrowing and same being passed on to customers will increase buying capacity and increase confidence to invest in Real Estate Asset. Consistently, with decrease in Borrowing rate and providing liquidity, RBI is proactively taking steps to ensure Real Estate Sector sails through these difficult times. Further, to ease temporary liquidity stress, debt servicing to Lenders has been further relaxed by another 3 months until August 31 and interest being capitalised will ease cash flows of Real Estate Developers and also help lenders to avoid any immediate asset classification issue”.
