Realtors see rise in home loan interest rate

Say 25-bps rate hike may also impact demand for affordable, lower mid-income housing

Realtors see rise in home loan interest rate

RBI Governor Shaktikanta Das

The RBI’s decision on Wednesday to hike repo rate by 25 basis points will result in an increase in interest rates on home loans and may impact demand for affordable and lower mid-income housing segments, according to property developers and consultants. The RBI left the door open for more hikes. Credai National President Harsh Vardhan Patodia said the continuous increase in interest rates would dampen the sentiment of borrowing for individuals and businesses alike.

Also Read: RBI hikes repo rate by 25 basis points to 6.5 per cent

Niranjan Hiranandani, national vice chairman, NAREDCO, said, “The outrageous hike of 250 basis point since May 2021 needs to be warranted before it turns negative for the ascending economic growth curve.” Real estate consultant Anarock Chairman Anuj Puri said, “This will add to the financial burden on homebuyers as apart from home loan interest rates.” He pointed out that interest rates may breach the 9.5 per cent-mark after this hike.

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