Key Points
Also, while the RBI is little more conservative, the expectation is that as markets improve, global markets or global economic situation improves, you could see a headline decline in the repo rates and that will have an impact on our interest rates coming down as well, which should support affordability..
To put a correlation, if you look at our office markets, there is a substantial amount of net absorption values that we have recorded this year, second highest only to actually 2019 and so that translation of new jobs being added is moving to the residential markets as well.. Post Covid, you have anyway seen that there is a substantial amount of change in homeowner dynamics..
So, effectively home loan rates are still single digits, still very attractive for home buyers to buy and that all of that has kind of contributed to where the markets were this year...
But again, it would have gone down below the 2021 levels primarily because in the last couple of years, we have seen interest rates rising and home values going up as well.. Effectively, home prices have started rising after nearly seven-eight years of being completely flat..
Next year, if you do see some sort of reduction on headline interest rates, this affordability level will track back to where 2021 was, effectively making all markets again very affordable and that works well for the markets..
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