Housing Sales To Be Affected Post RBI’s Decision To Hike Key Policy Rates
Housing sales are likely to be affected by post-RBI’s decision to hike key policy rates as this could lead to an increase in interest rate on home loans, according to property developers and consultants.
The Reserve Bank for the second time in two months has raised its benchmark interest rate by 25 basis points on inflationary concerns.
From a real estate perspective, this hike will negatively impact buyer sentiment with the logical result on the quantum of sales, Realtors’ body NAREDCO President said. Real estate sector is facing a multi-year slowdown due to low demand and significant delays in execution of housing projects by developers.
Property consultant Knight Frank India CMD said the increase in repo rate was on expected lines given the current inflationary trend. ANAROCK chairman said this may lead to a hike in home loan rates.
However, he said the overall real estate sector now rests on a strong footing and buying decisions might not be altered by these marginal changes.
JLL India’s CEO and Country Head said this may be a mental setback for the end users as, despite a healthy GDP, lending rates for homes and other desirable goods will move northwards.
He said the hike in policy rates could affect the entry-level housing market as very low ticket size purchase decision might be pushed further.
CREDAI National Vice President, who is also MD of Gaurs Group, said the RBI should have reduced repo rate to boost housing demand.
MD, Colliers International India said, it looks like that the opportune time for discount hunting in case of residential investments is slipping away. We should be at the last stages of the phase to buy at good bargains.
CREDAI Ghaziabad General Secretary said the increase in the lending rates affects the growth in real estate as the net cost on the buyer for the housing unit gets increased, while RG group MD said the sentiments would be hit in the real estate market.
MD, Ruparel Realty said, RBI’s decision of increasing the repo rate is a major concern for the housing sector as it has hiked the rates consecutively…With this decision, home loans are likely to get costlier.
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