• Feedback
  • RSS Feed
  • Sitemap
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
Home Business

Repo Rate Hike As Expected, May Further Impact Affordable Housing Demand

OMMCOM NEWS by OMMCOM NEWS
February 8, 2023
in Business

New Delhi: Real Estate Industry on Wednesday claimed that the repo rate hike by the RBI is likely to impact the demand of affordable housing in the country.

Given that interest rates may breach the 9.5 per cent mark with the hike, the affordable housing segment may see some pressure on sales volumes.

Anuj Puri, Chairman, ANAROCK Group said that the 25 bps rate hike is much along the expected lines.

“With repo rates now at 6.5 per cent, there could be some repercussions on housing uptake as home loan interest rates will head further north. The rates had already crept up after five consecutive rate hikes over the last one year. This will add to the financial burden on homebuyers as apart from home loan interest rates, property prices have also inched up in the recent past two to three quarters,” he said.

The affordable segment has already been in the doldrums, and adding further to the cost of acquisition obviously does not help, he added.

As per Anarock, the monetary policy impacts real estate demand in several ways. When the central bank raises interest rates, borrowing costs for buying real estate increase, which can reduce demand for housing. Conversely, when interest rates are low, borrowing costs are lower, and demand for real estate may increase. Also, an expansionary monetary policy, which increases the money supply, can lead to increased consumer spending and borrowing, potentially driving up demand for real estate.

Niranjan Hiranandani – National Vice Chairman, NAREDCO echoed the similar view. “Though surplus liquidity will power credit growth in the real estate sector, demand economics may be challenged in the affordable house segment – which is the broad spectrum of the consumption pyramid. The outrageous hike of 250 basis point since May 2021, needs to be warranted before it turns negative for the ascending Indian economic growth curve. The impact of home loan interest rate hike will be highly deterrent in the affordable housing segment as it will impact the price sensitive homebuyers and fatigue the supply of the developers. The luxury and mid housing segment players will remain cautious with a bit longer sales cycle,” he said.

It is an accommodative move as per current micro and macro economic conditions globally as well as domestic markets. Controlling inflation is the RBI’s mandate, and the apex bank is showing prudence in taking corrective measures to curb rising inflation,” Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd.

Amit Modi, Director, County Group, President CREDAI (Western UP) said, “The bank’s recent hike of 25 basis points will surely help in controlling the inflationary concerns, but we are also looking forward to a stable interest regime for a long term period to help millions of first time buyers across the country. In our view the present hike should not cause much concern, as the quantum is still relatively less.”

 (IANS)

Tags: Repo Rate Hike
ShareTweetSendSharePinShareSend
Previous Post

Tight Security For Prez Murmu’s Odisha Visit On February 10 & 11

Next Post

Odisha CM Scheduled To Attend Naba Das’ Memorial Service In Jharsuguda Tomorrow

Related Posts

Business

IEPFA, SEBI Prepare To Launch ‘Niveshak Shivir’ Initiative

May 10, 2025
London: Union Minister Piyush Goyal addresses the India-UK Business Roundtable in London, United Kingdom, on Tuesday, April 29, 2025. (Photo: IANS)
Business

India-UK FTA To Boost Growth Across Sectors: Piyush Goyal

May 10, 2025
Business

Midcap Rallies 3.94 Pc, Smallcap Gains 1.69 Pc As Indian Markets Post Strong April Returns

May 10, 2025
Business

Indian Markets End Lower This Week Amid Rising India-Pakistan Tensions

May 10, 2025
FM Sitharaman
Business

FM Sitharaman Takes Stock Of Steps For Cybersecurity At Banks Amid Rising Border Tensions

May 9, 2025
Morningstar DBRS
Business

India’s Credit Rating Upgraded To ‘BBB’ With ‘Stable’ Trend: Morningstar DBRS

May 9, 2025
Next Post

Odisha CM Scheduled To Attend Naba Das’ Memorial Service In Jharsuguda Tomorrow

To Sit Out And Breathe Fresh Air Feels Blessed: Rishabh Pant Updates On His Road To Recovery

New Zealand To Lift Minimum Wage From April 1

Khimji
TPCODL
  • Feedback
  • RSS Feed
  • Sitemap

© 2025 - Ommcom News. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ

© 2025 - Ommcom News. All Rights Reserved.