Since the home buying continues at its full pace even after an impending rate hike by Reserve Bank of India due to which there have been a continuous rise in property prices, the realty industry now is completely free from tensions, i.e, has shrugged off all its worries. Due to the still high food prices, many economists expect a fifth round of policy rate hikes towards the end of this month. Most probably, RBI will unveil its first-ever mid-quarter policy review on September 16.
However, the developers are still cool and confident for the residential sales even after a possibility of rate hikes by RBI are almost next week. The chairman of CREDAI, Confederation of Real Estate Developers’ Associations of India, Mr. Kumar Gera say that since the buyers fear of price rise in future, therefore they will not stop investing right now. These days an investor does not see the price if he can afford it, he added. Therefore, this price hike won’t make much difference to the market.
Tag Archives: price hike
Pre-Slowdown Observed in Realty Prices
HDFC, one of the leading home-loans lenders has observed that the prices of residential realty which were hitting the peak levels are now undergoing pre-slowdown.
Deepak Parekh, the Chairman of HDFC said that there is an improvement in the economic condition and therefore, developers have started charging premiums. Due to the land prices touching sky, the realty prices also shot up.
As per the report, there was a downfall of 25% in residential real estate prices in October 2009, but now it’s steeping upwards again.
Parekh observe this change in the most active markets of India, for instance, suburbs of Mumbai, NOIDA in the NCR, a Bangalore suburb etc which all are experiencing price hike.
Also, he plans for having a real estate regulator in place.