Home buyers might soon make a robust return to the Indian real estate market following the Reserve Bank of India's recent decision to cut rates along with the cash-reserve ratio requirement. Specifically, the bank has reduced the repo rate by a substantial 100 basis points, bringing it down to 5.5%, while the reverse repo rate is now at 4%. Additionally, effective from January 17, the cash reserve ratio has been lowered by 50 basis points to a new level of 5%. Real estate firms have expressed optimism, anticipating that this move will finally stimulate credit flow after a significant clampdown on lending that previously led to a downturn in sales. Mr. Rohtas Goel, Managing Director of Omaxe, commented, "We are confident that banks will reduce interest rates for the housing sector, which will help bring back the end-user to the market." Meanwhile, financial analysts are closely monitoring whether India's banks will fully pass on these rate cuts to consumers. Moreover, market confidence received a boost in December after officials disclosed that the government is working on a second stimulus package aimed at reviving the Indian economy. Many experts project that home loan rates may drop to around 8%, a figure likely to entice a considerable number of buyers to re-enter the housing market.