The Reserve Bank of India (RBI) raised the key interest rate for the 12th time since March, 2010, by 25 basis points to rein in high inflation. With RBI's decision, the home loans are set to get costlier, which would impact the real estate space.
Niranjan Hiranandani, managing director of Hiranandani Group told CNBC-TV18 that the marginal customers would be highly affected due to this rake hike. He indicated that there could be a possible recession in the real estate sector. He said, "We have been witnessing a recessionary trend in the realty space."
According to Hiranandani, most customers will postpone the buy position. Here is the edited transcript of his interview. Also watch the accompanying video. Q: What does this means for the realty sector? Has it begun to impact your expansion plans and new launches? Are you putting plans on hold given that the cost of money has gone up?
A: Most customers will postpone the buy positions. The scarier situation now is that even the existing customers would have to pay higher amounts of EMIs. For example, someone who was paying Rs 20000 would not have to pay Rs 27000-30000 due to the rate hikes. All this isn
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