Realtors left wringing hands with home loans set to cost more
RBI move will make things difficult for the industry already hit by slow sales
Jan 29, 2014
Source : The Hindu

DELHI: Hit by slowdown in sales coupled with few new launches, the real estate sector says it is disappointed by the Reserve Bank of India’s move to hike the repo rate.

The move will increase lending rates for customers and borrowing rates for developers, they say.

Brotin Banerjee, MD and CEO, Tata Housing, said, “Higher interest rates will affect investment in the realty sector. Demand for housing has already been sluggish for quite some time and the RBI move is likely to make matters more difficult for an industry. Higher rates will make it difficult to meet the objective of low-cost and affordable housing for the poor sections of society and for the middle class, respectively.”

David Walker, Executive Director, SARE Homes, felt that the move will have a short-term impact on demand, which is of concern given the slowdown in growth, but is required for price stability, which brings with it higher consumption and investment in the medium to long term.

A similar thought was echoed by Samantak Das, Chief Economist and Director Research, Knight Frank India, who said it will throw an adverse signal to the real estate market in the short term.

Pradeep Jain, Chairman, Parsvnath Developers, said, “This move would encourage banks to increase their lending rates which are already beyond reach. It will demoralise home buyers, who already prefer fence-sitting due to the unstable political scenario.”

Sanjay Dutt, Executive MD, South Asia, Cushman and Wakefield, added, “A lowering of rate would have induced some of them to consider a home purchase and benefited sales.”

Latest Realty News

Police seek annulment of Artha Tatwa Group’s assets
Jan 29, 2014
BHUBANESWAR: The Commissionerate Police have written to the State Finance Department for annulment of property of non-banking financial company Artha Tatwa Group that allegedly duped investors of more than Rs400 crore.
RBI seeks to control inflation: India Inc
Jan 29, 2014
MUMBAI: The Reserve Bank of India's move to increase repo rate by 0.25 basis points is aimed to control rising prices rather than encouraging economic growth, say CEOs.
RBI should explain why it is increasing rates: Rajeev Talwar
Jan 29, 2014
DELHI: The Reserve Bank of India (RBI) increased the repo rate on Tuesday. If the rise in repo rates does not lead to an increase in bank rates, it is a temporary measure to track inflation. If inflation goes down, RBI will, hopefully, reduce rates. If bank rates rise, it will impact the industry and economic growth will suffer a setback. Going forward, I hope RBI will not increase rates.
10 things to watch for in the commodities space
Jan 29, 2014
MUMBAI: Citi commodity research has come out with a report highlighting 10 areas that should be watched as they will have an impact on the world’s largest commodity consumer with 40 per cent market share. These factors could shape commodity prices and demand outlook in the coming months and years.
Business leaders decry rate rise
Jan 29, 2014
MUMBAI: The Reserve Bank of India (RBI)'s raising of the repo rate (at which it lends to banks for the short term) by 0.25 basis points is aimed to control rising prices rather than to encourage economic growth, say chief executives (CEOs) of companies.
'Teen Patti', drawing on real estate card game
Jan 29, 2014
KOLKATA: In a change of the theme of the Bollywood caper, which had featured the Big B and Ben Kingsley, the Bengali Teen Patti is quintessentially Kolkatan, as a crimer thriller starring the new Tolly heartthrob Ritwik and Puja Bose.
Hike in key interest rate to hit property market: CREDAI
Jan 29, 2014
DELHI: The Reserve Bank's hiking the key policy rate today will hit property sales, particularly in the residential segment, real estate developers said while expressing disappointment at the move.
Housing market set for positive growth in city’
Jan 29, 2014
TIRUCHI: Although the economic slowdown has resulted in poor demand for housing properties in the city last year, there are signs that the market is on the road to revival, say members of the Tiruchi chapter of Confederation of Real Estate Developers (CREDAI).
Cabinet to take decision on FDI in farm land
Jan 29, 2014
DELHI: The UPA Government has formed a three-member Cabinet committee to examine the possibility of opening up agricultural land to Foreign Direct Investment (FDI), following a Union Urban Development (UD) Ministry proposal on letting foreign realtors buy agricultural land.
The case for a land value tax
Jan 29, 2014
MYSORE: In a feudal society like India, land ownership has always been a source of wealth and power.

Latest Realty News Of State

Realty Talk's