Real estate sector will witness a boom with RBI’s move on lending rates, says CREDAI State vice president

Confederation of Real Estate Developers Association of India (CREDAI) State vice president K. Subhash Chandra Bose on Friday said that the construction industry would witness a boom in the State, including Amaravati region and North Andhra districts, as the banks are expected to reduce home loans.

Mr. Bose’s remarks come in the wake of the Reserve Bank of India (RBI) reducing 50 basis points on lending rates. Speaking to media here, he said that RBI’s support to banks would immensely benefit the real estate sector which had been facing challenges in the last few years.

“RBI’s cumulative 100 basis point reduction over the last six months is a welcome and strategic move to strengthen the economy. The affordable housing sector would get further boost with this measure. Prospective home buyers would come forward to buy properties when home loan interests are at reasonable level. The builders would also take up new projects in a confident manner,” Mr. Bose said.

Beyond real estate sector, the rate cut is likely to unlock demand across consumption driven sectors. It will revive private investment and reinforce economic momentum in next few years. The brisk economic activity will create many job opportunities in construction and other fields, he said.

Mr. Bose, who is also the Managing Director of Pride Developers, hoped that the speedy construction of international airport at Bhogapuram would spur economic activity in the district.

Published - June 06, 2025 06:26 pm IST