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Below the Reaction on the RBI policy by Vimal Nadar, Head of Research at Colliers India 

Consecutive reduction in benchmark lending rates will boost homebuyers’ sentiments and resultantly improve housing demand particularly in affordable and middle-income segments. Real estate developers across segments also stand to benefit from likely lowering of financing costs. Overall demand and real estate growth is likely to be on the upswing, given the anticipation of further easing in monetary policy. However, global headwinds and trade frictions will remain a key monitorable for all economic sectors including real estate.

RBI has also proposed securitization of stressed assets through a market-based mechanism, in addition to the Asset Restructuring Company (ARC) route. Reduction in borrowing costs coupled with alternate resolution mechanism for stressed assets is likely to benefit real estate stakeholders in the near-mid-term. This is expected to provide significant relief to cash strapped developers and several stalled projects due to financial constraints.

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