Like this story, share it with millions of investors on M3
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.
The real estate sector has taken a big hit after the Reserve Bank of India (RBI) announced a surprise rate hike late Friday evening. However this seems to be better news for pricing which shot up 15-20% in the past three to four months. The move would certainly slowdown pricing for a bit-at least till April 20, when things become clearer.
The repo rate hike has negatively affected market sentiments-with the low- to middle-income housing being worst hit. Also, developers are expected to go slow on launches.
The interest rates are unlikely to see a rise, said Orbit Corporation 's Managing Director, Pujit Aggarwal.
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. Further he said that realty developers had increased prices in some areas.
