Real Estate’s Late Revival
While the immediate impact may be marginal, it comes immediately on the back of a previous rate hike in June, and may further slow down activity in the realty market. In case of new customers, this will be about relooking at their budgets, further delaying their purchase and impacting the developer’s sales velocity or off take.
But this may lead to a hike in home loan rates, but the overall real estate sector now rests on a strong footing and buying decisions may not be altered by these marginal changes. These numbers clearly indicate that the markets are now recovering from the shocks of structural changes and policy reforms. In fact, genuine home buyers have welcomed these actions, which have imbibed the muchneeded financial discipline, accountability and transparency in the sector.
The rate-hike by the central bank could further hurt the real estate sector. According to industry experts, the increase would dampen buyers’ sentiments.
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