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Experts' take on road ahead for realty post rate hike
Reacting to the move made by the RBI, Ravi Ramu, Director of Finance, Puravankara Projects said the banks were expected to start rate negotiations soon.
Q: You already mentioned that prices are already close to peak. We have recently seen a big pick up in the equity markets also. you think the demand that we are seeing in Mumbai. Is this an end user demand or is it speculative demand because historically the trend has been and you park a lot of funds in the real estate markets especially in Mumbai?
Aggarwal: Being a real estate player in Mumbai, what we are seeing right now is that in 2007-2008 we had 90% of our buyers who were actual users. But the fact is that now people having made money, the investor component in the entire purchases or sale from or side that's about 70% of our actual users and 30% is investors.
Therefore, the investor component has certainly gone up and specifically in our projects which are in central Mumbai, and south Mumbai is where our significant projects are and that is not affected because they are all actual users.
