New Delhi . Soon after the central bank Reserve Bank of India (RBI) hiked the repo rate by 40 basis points, the banking sector followed suit by increasing interest rates in lending and deposit schemes.
From major banks to small finance banks, many joined in raising the lending and deposit rates.
After the 0.40 per cent hike in the repo rate, many banks raised their external benchmark based lending rates, at which the RBI lends short-term money to banks.
This move by the banks is expected to impact the growth of the real estate industry and may impact the demand for housing.
Kaushal Aggarwal, President, The Guardians Real Estate Advisory, said, “The all-time low home loan interest regime boosted housing demand and helped the economy get back to pre-Covid levels. This marked a strong recovery in the real estate sector. enabled as well.”
Now, the move to hike interest rates along with increase in input cost on construction by banks may temporarily limit the growth momentum of the real estate sector.
Realtors feel that there could be a short-term impact on sales due to rising property prices, which could put a brake on the overall demand.
Shraddha Kedia-Agarwal, Director, Transcon Developers said, “We have already started seeing a vertical movement in house prices due to higher input cost on construction and increase in stamp duty. Steps to hike interest rates by banks This will further impact the sentiments of homebuyers, thereby impacting the overall demand.”
Bhushan Nemlekar, Director, Sumit Woods feels that there will be a major setback for the real estate industry with rising property prices, which is hampering the ongoing growth momentum in the sector.
Echoing Nemlekar’s view, Sachin Chopra, Managing Director, Pushpam Group, said that the upward revision in interest rates has a huge impact on the long-term goals of investors.
—AnyTV News
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