Key Points
Realty developers body the Confederation of Real Estate Developers' Association of India (CREDAI) has urged the Reserve Bank of India to not increase the repo rate any further, citing the financial challenges faced by developers and the potential impact on housing sales due to the consequential rise in prices and home loan rates...
Through six successive hikes since May, the central bank has raised policy rates by cumulative 250 basis points taking the repo rate to 6.5%..
Another repo rate hike would not only make certain projects financially unfeasible, but it would also deter homebuyers as home loan rates will be at an all-time high, said Harsh Vardhan Patodia, President CREDAI...
Acknowledging the support RBI has lent to the industry in the past, especially during peak covid, CREDAI is highlighting the need for a lower repo rate by stressing on the strong GDP growth numbers that India could achieve during 2021- 2022, according to him, enabling a win-win situation for all stakeholders involved...
This could lead to a slowdown in the real estate market and result in homebuyers postponing their purchase plans, reversing a trend in the post covid era wherein homebuying was on the rise.. In 2022 the Indian real estate market experienced a resurgence across all three sectorsresidential, office, and retailfor the first time in a decade, showed the data from Knight Frank India...
