Actual Impact of Interest Rate Hikes to be Seen Next Year
Figures collated by online portal Foreclosure India on auctions held by banks and Debts Recovery Tribunal (DRT) since January 2010 show that of 32 cities across India, Mumbai’s speculative realty market has the second highest number of foreclosed properties after Bangalore.
DRT show a 23 per cent rise in cases of Mumbai properties, mostly residential, seized by banks following home loan defaults, between January and July 2011 as compared to the same period last year.
The frequent interest rate hikes by the central bank —11 times in the past 16 months alone — has begun to dent the loan repayment capacity of home buyers. Analysts say the actual impact will be seen next year when the teaser rates introduced by many banks are reset.
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