No let up in demand for properties

In spite of RBI revising repo rate four times in current fiscal increasing rate of interest on housing and other loans, experts say that it has no dampening effect on the demand for properties. Many felt that it would have severe impact on demand for residential properties. Increasing prices of units by developers and the RBI increasing the repo rate in fact not affected the demand for properties in the major cities. There is no change in the demand for houses,” said Santhosh Kumar, Vice Chairman of Anarock Group. Home sales are improving on a strong note in the current festive quarter. This is in spite of rise in house prices and interest rates, many factors are contributing to the growth of demand for houses.

• Because of Covid-19, every one’s first priority is to have a home. Therefore, house prices have also increased. Also, increased is the desire to invest in good properties.
• Compared to global financial crisis of 2008, interest rates currently are much lower. In 2008, the interest rates were pegged at 12 percent and higher. Therefore the current rate of interest of 9% is cheaper.
• India is no exception to inflationary tendencies occurring worldwide. Many feel that this is the best time to invest in a house.
• Over the last eight years, the purchasing power of people has increased. The increase was the best in the last financial year. The affordability is continuing rather attractively.