RBI Key Rate Hike Will Decrease Construction Activity in Mumbai
No Comments Sub Category:Realty News,Uncategorized Posted On: Sep 17, 2011
Reserve Bank of India (RBI) home loans are increasing frequently resulting in the people being dissuading from buying houses. Sanjay Dutt the CEO of Jones Lang LaSalle India reported saying that the home loan interest hike will decrease the construction activity directly impacting on the real estate sector. Few smaller builders will find edged out of the business with the increased production costs. Also added on saying that owning a house in Mumbai will soon become a mirage with this rate of increment.
Boman Irani the managing director of Rustomajee Group reported saying that the affordable housing scheme taken up by the state government is observed to have taken a hit with the rate hikes. Home loan borrowers will pay higher EMIs resulting in them having longer loan tenures with daily inflationary pressures. Property developers will be more affected as borrowing rates increase is tied up with the money supply. Niranjan Hiranandani the MD of Hiranandani group reported saying that the RBI hike in key rates is 12 times increased since March 2010.
Source: Daily News Analysis
Tags:
Hiranandani group, Home loans, Jones Lang LaSalle India, Mumbai, Real Estate Sector, Reserve Bank of India (RBI), Rustomajee Group
