New Delhi : Housing sales are likely to be affected post RBI’s decision to hike key policy rates as this could lead to increase in interest rate on home loans, according to property developers and consultants.
“From a real estate perspective, this hike will negatively impact buyer sentiment with the logical result on quantum of sales,” realtors’ body NAREDCO President Niranjan Hiranandani said.
Realtors’ body CREDAI National President Jaxay Shah said: “Two consecutive hikes in the repo rate partially undo the policies for promoting affordable housing. We urge the government to expedite lowering effective GST on all housing to 8 per cent so as to preserve the growth impulses in real estate.”
Realty major DLF’s CEO Rajeev Talwar said: “This second consecutive repo hike will push overall interest rates in the economy, which may impact the real estate and consumer goods sector that has just started seeing green shoots.”
The hike might be a “temporary dampener” especially in the affordability housing sector as the borrowing cost for the sector will go up, he added. 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 Shishir Baijal said the increase in repo rate was on expected lines given the current inflationary trend.