The RBI’s decision to hike repo rate will hit consumers’ buying sentiment, but will have a moderate impact on housing sales in the affordable and mid-income categories, according to industry experts.<\/p>\n
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Photograph: Danish Siddiqui\/Reuters<\/span><\/p>\n With a hike in repo rates by 50 basis points, interest rates on home loans will rise and affordability of buying homes will reduce, they said.<\/p>\n However, property developers and consultants feel that impact will be limited in view of pent up, as well as current festive demand.<\/p>\n \u00a0<\/p>\n Developers are already offering discounts and freebies to boost sales during festival season and may further sweeten the deal to attract fence sitters.<\/p>\n Anarock Chairman Anuj Puri said: “With this repo rate hike, home loans will get dearer soon. This could impact residential sales to some extent during the upcoming festive quarter, particularly in the affordable and mid-range housing segments.”<\/p>\n Housing sales have risen by 40-50 per cent in the July-September quarter, despite a hike in interest rates on home loans and a rise in housing prices.<\/p>\n Puri is of the view that impact will be moderate if mortgage remains below 9 per cent.<\/p>\n Amit Goyal, CEO, India Sotheby’s International Realty, which is into brokerage of luxury homes, said the hike might impact consumption sentiments negatively ahead of the festive season.<\/p>\n “Home loan rates will still remain below 9 per cent per annum and people must utilize this opportunity and make their purchases by cashing in on offers and festive discounts in the market,” he advised.<\/p>\n “We believe that home loan interest rates inching towards 9 per cent and above may result in moderation of housing sales growth in the medium term, especially post the current festive season,” said Samantak Das, chief economist, and head of research, JLL India.<\/p>\n Banks have increased interest rates on home loans by 80 basis points since April, transmitting more than 50 per cent hike in repo rate, he said.<\/p>\n Home buying sentiment is not likely to be impacted significantly, said Ramesh Nair, CEO of Colliers India.<\/p>\n Shiwang Suraj, Founder & Director, Inframantra said, the rate hike will have only limited impact on housing sales due to festive demand and offers by developers.\u00a0<\/p>\n<\/div>\n[ad_2]\n<\/p>\n News From This Website <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"