Reaction of Dr. Niranjan Hiranandani, Vice Chairman, NAREDCO on hike in repo rate by 35 bps and its impact on the real estate sector.

New Delhi, December 11, 2022: The prolonged rate hike by 35bps to 6.25% still remains in the low regime of interest rate zone. The floating home loan interest rate due to rate hike may hurt temporary EMI payouts, but in the long tenure it averages out positively. Today, the growth impetus in the housing sector prevails on the back of real demand translating into the actual transactions exhibited by incremental sales registered in the market. The demand for residential real estate has expanded multifold across segments and geographies corroborating the improved bank credit figures in the retail home loan segment. The sector continues to exude signs of a bullish growth curve as the promising macro-economic growth vectors bodes well to fuel investment inflow, enhanced capex cycle and new inventory in the market.”

“Though, the property market may experience a lag in sales to accommodate rising EMI payouts and simultaneously evaluate postponement options for a stipulated period of time. The persistent home ownership sentiment rides too high amidst geo-political turbulence, spiraling uncertainties, and an escalated inflation crisis on the back of stability and social security that this asset offers” said Dr. Niranjan Hiranandani, Vice Chairman, NAREDCO.

Corporate Comm India (CCI Newswire)