housing prices may go up on back of rbi rate hike
Housing prices could go up, as the borrowing cost for developers is set to increase following the hike in short-term lending rates by the RBI, industry body CREDAI said today.
However, real estate consultant Jones Lang LaSalle (JLL) said that developers are unlikely to increase housing prices as demand in bigger cities would be hit due to the RBI’s monetary policy.
India’s largest realty firm DLF said that banks should not increase the interest rates and felt that prices, whether of food or housing, can only be controlled by improving supplies.
Reacting to the RBI’s decision to raise the repo and reverse repo rates by 50 basis points, Confederation of Real Estate Developers Association of India (CREDAI) Chairman Pradeep Jain said: "This is going to increase the cost of funds for both developers and home buyers.