+
RBI rate hikes, higher costs fail to deter home buyers
Real Estate

RBI rate hikes, higher costs fail to deter home buyers

Sales of residential properties continue to witness month-on-month growth despite the recent surge in property prices due to the increase in cost of raw materials and the Reserve Bank of India increasing the repo rate twice during the quarter, according to leading real estate developers and brokerage firms.

According to an Economic Times report, experts said that following the outbreak of the Covid-19 pandemic, the perception of real estate investing changed. “Despite the increase in repo rate, affordability is at an all-time high. The real estate industry was in a downturn for a long time but now the cycle has turned. We believe the positive sentiment will continue,” Mohit Malhotra, managing director and CEO Godrej Properties Ltd, told the newspaper.

According to Motilal Oswal Financial Services Ltd, despite a sharp recovery in demand in the past two years, prices have remained broadly flat this time, thereby limiting the impact on affordability.

“We continue to witness month-on-month increase in sales volume,” said Sanjay Dutt, managing director and CEO, Tata Realty & Infrastructure Ltd.

The setting up of the Real Estate Regulatory Authority (RERA) has also improved builder-buyer sentiment, which is now on the positive side, as well as easing the overall loan process and buying journey.

Also Read:
PNB Housing Finance: Housing sector to grow in 5 years
Delhi-NCR housing market sales fall 19% in Apr-Jun


Sales of residential properties continue to witness month-on-month growth despite the recent surge in property prices due to the increase in cost of raw materials and the Reserve Bank of India increasing the repo rate twice during the quarter, according to leading real estate developers and brokerage firms. According to an Economic Times report, experts said that following the outbreak of the Covid-19 pandemic, the perception of real estate investing changed. “Despite the increase in repo rate, affordability is at an all-time high. The real estate industry was in a downturn for a long time but now the cycle has turned. We believe the positive sentiment will continue,” Mohit Malhotra, managing director and CEO Godrej Properties Ltd, told the newspaper. According to Motilal Oswal Financial Services Ltd, despite a sharp recovery in demand in the past two years, prices have remained broadly flat this time, thereby limiting the impact on affordability. “We continue to witness month-on-month increase in sales volume,” said Sanjay Dutt, managing director and CEO, Tata Realty & Infrastructure Ltd. The setting up of the Real Estate Regulatory Authority (RERA) has also improved builder-buyer sentiment, which is now on the positive side, as well as easing the overall loan process and buying journey.Also Read: PNB Housing Finance: Housing sector to grow in 5 years Delhi-NCR housing market sales fall 19% in Apr-Jun

Related Stories

Gold Stories

Next Story
Real Estate

Kamdhenu Realities acquires 4-acre Navi Mumbai land parcel

Kamdhenu Realities has acquired a 4-acre land parcel from RPG Life Sciences on Thane-Belapur Road for approximately Rs 1.5 billion, expanding its commercial real estate portfolio in Navi Mumbai.The parcel has a total developable potential of 1.8 million sq ft, on which Kamdhenu plans to develop a destination-scale commercial and lifestyle ecosystem. The proposed development will combine corporate office suites with high-street retail, F&B outlets, double-height lobbies, business infrastructure and lifestyle amenities.Located close to IKEA and opposite the upcoming Pawane Railway Station, t..

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code