Property developer and advisor believe that the decision of the Reserve Bank to increase the key policy rate repo can affect sales of residential units. Increasing the repo rate can increase interest rates on housing loans. For the second time in two months, the Reserve Bank has increased the key policy rate repo by 0.25 percent. The Reserve Bank has taken this step in the wake of inflation in the coming days.
Niranjan Hiranandani, president of NAREDCO, the owners of real estate companies, said, “If you look at the real estate sector, the house of this growth will have a negative impact on buyers’ perception, and the sale of houses will be reduced.” That the real estate sector is going through a recession due to several months due to the lack of demand and delay in the preparation of residential projects. Nitish Knight Frank India CMD Shishir Baijal said that considering the inflationary trend, the repo rate growth has been consistent with the expectation.
ANAROCK chairman Anuj Puri said that the impact of this increase can be on housing loan rates. However, he said that in total, the real estate sector is standing firmly in this time and no such change can change the decision of those who buy the house. “After the monetary policy announcement of RBI, most banks will fix their deposits and interest rates on renewal,” said Anshuman Magazine, chairman and CEO of CBRE’s India and Southeast Asia unit. However, this change is not likely to have an impact on the real estate sector because most housing loans are of 15 to 20 years of long duration, and during this period, the rate of interest has gone up so that it becomes equilibrium throughout the entire period. is.’