RBI hike in key rates- Developers to pass on the burden on Home Buyers
No Comments Sub Category:Uncategorized Posted On: Sep 19, 2011
Reserve Bank of India (RBI) declared a key rate increase of a 25-basis points and the cost of housing is expected to be raising resulting in the developers to pay more interest on the borrowed money from the financial institutions. Pradeep Jain the chairman of Confederation of Real Estate Developers’ Association of India (CREDAI) reported saying that they had hardly any option hence resulted in burdening of increased costs on the buyers.
Rajeev Talwar the executive director of India’s leading realty firm DLF reported saying that the housing prices would increase due to rise in the cost of financing the project. He warned the public saying that the increase in EMI on home loans will result in discouraging the potential buyers to purchase the property. The estimation suggests that the developers’ borrowing costs will end up in the increase in housing loans by 15-20 per cent. However the purchase of property will remain a good investment option. The housing prices is expected to seek a hike by 30-50 per cent and also the rate hike is said to be depending on the location only after the Land Acquisition Act is passed by the state parliament.
Source: News Tonight
Tags:
Confederation of Real Estate Developers' Association of India, CREDAI, Housing loans, India’s leading realty firm DLF, Land Acquisition Act
