Real estate stocks end in the green as RBI ‘pauses’ rate hike

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Key Points

The real estate sector heaved a collective sigh of relief as the Reserve Bank of India took its foot off the rate hike pedal, providing a breather to the sector which has been fearfully tracking interest rate movements over the past one year...

It has also hit real estate developers as their borrowing and construction costs have gone up...

The pause in the rate hike cycle at least until the next policy in June was greeted by enthusiasm and real estate stocks rose and ended the day with strong gains ranging from 1 per cent to 6.7 per cent..

Hiranandani Groups founder Niranjan Hiranandani, who has been critical of the relentless rate hikes, said, This act of relief will restore confidence in home-buyers sentiment and boost demand rally in the real estate..

While luxury home sales are generally impervious to interest rate hikes, India Sothebys International Realtys CEO, Amit Goyal, said that further rate hikes could affect this segment as well..

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