Real Estate Latest Update:
With the Reserve Bank of India’s (RBI) monetary policy committee (MPC) expected to meet next month (first for FY2024), real estate players are worried about any hike in repo rates Which in turn will increase the home loan rates.
Pradeep Agarwal, Founder, and Chairman, of Signature Global (India) Ltd., said, “In the last three quarters, interest rates on home loans have crossed 9 percent, a 40-50 percent increase from the historic low of 6.5 percent per annum represents. As a result, many home loan borrowers are feeling the impact of this significant increase in interest rates.”
Real Estate: The real estate sector seems worried due to a further increase in the repo rate. Real estate players are worried about any hike in repo rates which will in turn increase home loan rates.
Real Estate Latest Update: With the Reserve Bank of India’s (RBI) monetary policy committee (MPC) expected to meet next month (first for FY2024), real estate players are worried about any hike in repo rates Which in turn will increase the home loan rates.
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Pradeep Agarwal, Founder, and Chairman, of Signature Global (India) Ltd., said, “In the last three quarters, interest rates on home loans have crossed 9 percent, a 40-50 percent increase from the historic low of 6.5 percent per annum represents. As a result, many home loan borrowers are feeling the impact of this significant increase in interest rates.”
Agreeing that the hike in interest rates has not impacted housing demand, Agarwal said that any further hike in policy rates could push home loan interest rates beyond the psychological barrier of 10 percent, which buyers would There can be a great impact on emotions and potentially.
Aggarwal said, “To reduce the damage caused by the increase in interest rates, the government should not only restrict a further increase in home loan interest rates but also encourage state governments to provide stamp duty exemption Needed.”
According to Vimal Nadar, Head of Research, Colliers India, home loan interest rates are already at an alarmingly high level of 9.5 percent and above in response to the increase in repo rates.
Nadar said, “Homebuyers already stretched on EMI (Equated Monthly Installment) and loan tenure, will be hit hard by a further hike in the interest rate. The impact will be compounded in the current environment where the industry is expecting less growth in income levels with housing prices remaining stable.”