The real estate sector in Delhi-NCR has expressed concern over the Reserve Bank of India’s revision of the repo rate and subsequent EMI hike.
The real estate is struggling in the Delhi-NCR due to delayed possession and prolonged halt on construction last couple of years due to Covid-induced lockdowns. (Image for representation)
The real estate sector across the national capital region (NCR) expressed concern over the RBI’s revision of the repo rate and subsequent hike in EMIs. The market, which is already limping back from consecutive pandemic-induced lockdowns, will lose many potential buyers in the economic housing segments, experts said.
Ankit Kansal, Managing Director of 360 Realtors, said, “In general, the increase in the REPO rate might not be a welcome step, as the real estate industry has been enjoying a bull run backed by revived demand and reduced home loan rates. However, there is visible turbulence in the international financial markets, which is resulting in inflationary pressure on India and the Central Bank is supposed to take precautionary steps. Across the globe, we have seen central banks increasing repo rates and the recent hike by the RBI is an extension of a larger global phenomenon.”
Also read: RBI likely to go for more interest rate hikes this year: Report
Real estate is struggling in the NCR due to delayed possession and prolonged halt in construction the last couple of years due to Covid-induced lockdowns. A majority of the workforce had left for their hometown during the lockdowns. However, things started getting better this year with many new projects being launched and work on existing projects going in full swing.
Amit Modi, President of CREDAI Western UP, said, “RBI’s increase in Repo rates by 50 basis points has once again increased the interest rates on loans. This is certainly going to impact the efficiency of buyers, especially the middle-class section of society. After this hike, millions of homebuyers might be sidelined and alienated from the property markets. This will decrease the pace of sales of projects in the real estate market.”
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