+
 Monetary Policy Committee plans repo rates hike by 4.40%
Real Estate

Monetary Policy Committee plans repo rates hike by 4.40%

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points.

The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months.

Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic.

He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector.

The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners.

According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY.

Anarock surveyed that a hike in the product price will significantly impact the residential sector.

Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic.

Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans.

He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector.

Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates.

He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%.

Image Source

Also read: RBI Governor: Interest rates to be cut by 75 bp

The Monetary Policy Committee has decided to increase the repurchasing option (repo) rate by 40 basis points. The real estate developers told the media that they believe in the repo rate hike to 4.40%. It will effectively end the low home loan interest rates that the homebuyers have been enjoying for the past 18 months. Chairman of Anarock Property Consultants, Anuj Puri, said that the price hike would end all-time low home loan interest rates, which have been driving demand for housing sales during the Covid-19 pandemic. He added that the rising interest rates and inflationary trends in basic construction materials like steel, cement, labour cost, etc., will increase the burden on the residential sector. The Indian real estate sector is reviving post-pandemic, with many prospective buyers advancing plans to transform homeowners. According to Knight Frank India, between July-December 2021, 1,33,487 houses were sold, up by 41% year-on-year (YoY) growth. Overall, 2,32,903 houses were sold in 2021, up by 51% YoY. Anarock surveyed that a hike in the product price will significantly impact the residential sector. Chairman and Managing Director of Sterling Developers Ramani Sastri said that the price hike would affect residential demand, which has been revived post-pandemic. Chief Economist and Research Head of India at Jones Lang LaSalle (JLL), Samantak Das, highlighted the negative impact of repo price hike as it projected an imminent hike in home loans. He added that the company estimated a robust comeback in five years in residential sales due to affordable housing. But the repo price hike, along with increased cost inflation, might slow down the growth in the residential sector. Chairman of the National Real Estate Development Council (NAREDCO), Niranjan Hiranandani, said that the residential sector could be saved if the level of insulation sets between the repo rate hike and a real hike in home loan interest rates. He added that the regulator should ensure that inflationary pressure on homebuyers does not collide with the home loans hike, especially if the inflation rates have been beyond the Reserve Bank of India's (RBI) upper band of tolerance of 6%. Image Source Also read: RBI Governor: Interest rates to be cut by 75 bp

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?