Realtors Expect Real Estate Demand to Remain Resilient Despite Repo Rate Hike
· Business · Economic Times, LiveMint
Real estate developers in West Bengal anticipate that housing demand will remain resilient despite the Reserve Bank of India increasing the repo rate by 25 basis points to 5.50 percent. The central bank raised its benchmark interest rate for the first time in nearly four years, driving up borrowing costs for housing and construction loans across banks and financial institutions. CREDAI West Bengal president Sushil Mohta noted that the rate hike will exert some adverse pressure on the sector. Primarc Projects MD Siddharth Pansari stated that while home loans may become marginally more expensive in Kolkata, genuine homebuyers focused on long-term lifestyle and location will remain undeterred. Purti Realty MD Mahesh Agarwal added that developers face a marginal increase in the cost of capital, though market fundamentals remain stable.
Why it matters
Higher repo rates increase home loan EMIs for Indian buyers, testing the affordability limits of the ongoing residential real estate boom.
Read the original report — Economic Times
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