Prevailing threat of Covid new variant, global economic recession, increased rate of interest on home loans from 5.9 to 6.25%, following revision of repo rate several times by the RBI, are going to impact real estate market. All banks will increase their lending rate following revision of the repo rate. These factors will impact decisions of prospective buyers of housing units. Yet, many people nurse a strong desire to fulfill their dream of buying a house.
The pandemic situation propelled the people forward to buy big houses. But, the increased rates of lending proved to be an obstacle. However, the prospective buyers are unlikely to postpone their decision to buy houses and consider buying them. The general feeling among the buyers is that the increased repo rates have become a menace to them. For the realty sector to grow, to protect the interests of investors in realty sector, the lending rates should remain constant.
Several express the view that the growing repo rates would affect the flow of investments into the real estate sector. The prevailing repo rate is a bit higher compared to the prevailed rates earlier. The higher repo rate is likely to significantly affect the buying of luxury real estate. Experts predict that mid-housing markets will experience more sales. In this backdrop, the increased sale of houses is predicted undoubtedly. However, the situation of investors and ultimate consumers would be very hard. The rising prices of houses is not going to impact the buyer enthusiasm to own properties because Indians give a lot of priority to own a house.
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