Expensive loans will affect the demand for homes
The Reserve Bank has increased the repo rates by 0.4 percent today and the rate has now increased to 4.4 percent. The realty sector fears that with the rise in commodity prices, the cost of loans will also have a bad effect on the demand for homes.
Realty Sector (realty industry) suspects that reserve Bank ,RBIThe effect of increase in interest rates can be seen on demand. Due to expensive loans, there is a possibility of reduction in the demand for homes. The Reserve Bank today announced an increase of 40 basis points in the repo rate to control the rising inflation. After which now the repo rate (Repo Rate) has increased to 4.4 percent. With the increase in the repo rate, the loan rates are expected to increase. According to the realty sector, in the sector in which most of the purchases are done through loans, the negative effect of expensive loans can be seen. According to the industry, in such a situation when the prices of steel and cement are all increasing, the pressure on the sector will increase due to costlier loans.
What is the opinion of the sector
Speaking on the Reserve Bank’s decision, CREDAI President Harsh Vardhan Pataudia said that the low interest rates had helped the real estate sector a lot during Kovid. The increase in rates is an unexpected step for the entire sector. He said that we are seeing growth in the realty sector, although the increase in rates will have an impact on the purchasing power of the customers. At the same time, Boman Irani, President, CREDAI MCHI said that the sudden change in repo rates will have an impact on the growth of the industry. Considering that raw material prices continue to rise, customers will refrain from taking loans at higher rates. He said that even though the rates were at lower levels for a long time. We had requested not to change the rates to support the Goths. Enrock Chairman Anuj Puri said that the gains indicate that the time for the lowest interest rates is over, which was the key to driving demand for homes across the country during the time of Kovid. Along with this, due to expensive loans and costly raw materials, the burden on the realty sector will increase further, Puri said. He also said that the increase in interest rates will increase the cost of home buyers and will have an impact on the demand for homes.
Reserve Bank hikes interest rates
The Reserve Bank has increased the repo rates today. Repo rates have been increased by 0.4 percent and the repo rate has now increased to 4.4 percent. Along with this, the Reserve Bank has announced an increase of 50 basis points in the cash reserve ratio, which will be applicable from May 21. After the increase, the CRR will reach 4.50 percent. With the increase in the repo rate, it has also been decided to increase the bank key loan rates and in the coming times a new round of increase in home, vehicle and other loan rates may start. The Reserve Bank has indicated that the rates can be increased further in the coming times as well.