Thane Real Estate Market Set for Growth After RBI Repo Rate Cut

Thane/ Mumbai: The Reserve Bank of India’s (RBI) 25 basis-point repo rate cut is expected to provide a significant boost to Thane’s real estate market, positively impacting both residential and commercial segments, according to Sachin Mirani, President of CREDAI MCHI Thane.

As inflation comes under control, economic growth will move upward, which will have a direct impact on Thane’s real estate sector, Mirani added. This positive outlook is based on the expectation that the reduced interest rates will enhance homebuyer affordability and ease borrowing costs for real estate developers.

Faiyaz Virani, Hon. Secretary of CREDAI MCHI Thane, explained that the reduced interest rate regime will work at two levels. “First, it will enhance homebuyer affordability, and secondly, it will ease borrowing costs for real estate developers, thereby improving overall market liquidity,” he said.

The RBI’s calibrated 25 basis-point rate cut is a welcome move that will accelerate home buying in Thane’s residential segment, particularly in the premium and luxury homes market, Mirani noted. “This will strengthen Thane’s commercial property off-take and support new investments in Thane’s real estate growth story,” he concluded.

Thane, a rapidly developing suburb of Mumbai, has seen significant growth in recent years. The city’s strategic location, coupled with improved infrastructure and connectivity, has made it an attractive destination for both residential and commercial real estate investments. The reduced repo rate is expected to further catalyze this growth, making Thane a hot spot for property buyers and developers alike.

CREDAI, the Confederation of Real Estate Developers' Associations of India, is a national-level organization representing real estate developers. The CREDAI MCHI Thane chapter plays a crucial role in advocating for the interests of real estate developers in the Thane region and promoting sustainable and inclusive growth in the sector.

The RBI’s decision to cut the repo rate is part of its broader strategy to stimulate economic growth and control inflation. This move is expected to have a ripple effect across various sectors, with real estate being one of the primary beneficiaries. As the cost of borrowing decreases, both homebuyers and developers are likely to see improved financial conditions, leading to increased investment and activity in the market.

In conclusion, the RBI’s repo rate cut is a positive development for Thane’s real estate market, promising to enhance affordability, improve liquidity, and drive new investments in the region.