Real estate sector troubled by RBI’s repo rate hike, housing demand affected by expensive home loans

Repo Rate Hike Impact On Housing Demand: Despite the Corona epidemic (Covid19 Pandemic), for the last two years, there has been a great boom in the real estate sector. There was a great boom in Housing Demand. Apart from cheap home loans, many state governments have reduced the stamp duty, due to which the demand for homes has increased. But due to the decision of RBI to increase the repo rate and CRR, the supposedly cheap home loan era may end, which can have an impact on the growth of the real estate sector.

Home loan will be costlier after RBI’s decision
RBI has taken two decisions, first by increasing the repo rate by 40 basis points from 4 per cent to 4.40 per cent, then by increasing the CRR ie Cash Reserve Ratio, Rs 87,000 crore will be removed from the banking system. The effect of this will be that there will be a shortage of cash with the banks to distribute the loan. So due to the increase in the repo rate, banks can soon increase the home loan. Due to this, people thinking of buying a house will have to pay expensive EMI, then the EMI of those who have taken home loan will become expensive.

Real estate sector surprised by RBI’s decision
CREDAI President Harshvardhan Patodia said on the RBI’s decision that, due to the cheap repo rate, the real estate sector has benefited tremendously during the Corona period. The decision of RBI to increase the repo rate is surprising. Anarock Chairman Anuj Puri said that this is a sign that the era of cheap loans is coming to an end, which has proved to be most helpful during the Corona epidemic in increasing the sales of houses. On the other hand, Nardeco Vice Chairman Niranjan Hiranandani expressed the hope that the decision to increase the repo rate will not affect the interest rates of home loans. And the regulators will ensure that inflation will not affect the people in the form of hike in home loan interest rate.

read this also

Repo Rate Hiked: RBI gave a big blow, increased the repo rate to 4.40 percent, the loan will be expensive – EMI will increase

RBI Hikes Repo Rate & CRR: Know What is the Meaning of Increase in Repo Rate and CRR?

Source link

Leave a Reply

Increase Alexa Rank Buy Website Traffic