Reserve bank of India announced hike in repo rate recently and this hike was highly criticized by the top developers of the realty sectors. Experts of the real estate industry believe that this hike will cripple the real estate sector and will put them through hard time. Every year realty sectors contributed a huge sum of money towards the growth and development of the economy and this hike will make lessen the profits of the developers. The repo rate is the rate at which other banks borrow from Reserve bank of India. The hike will put a negative impact on the realty sector. The rise in cost of home loans will lessen the property demand as the customers who are already burdened with home loan will not engage in new transactions.
Managing director of Omkar Realtors and developers Ltd also shares similar views, he said that realty sector is facing a hard time dealing with issues like hike in interest rates, inflation and slowdown in global economy. The interest rate has reached to such a level that the real estate industry will not be able to handle any more rise in the interest rates, it will damage the realty industry badly. There is shortage of apartments in urban areas. The realty developers are not able to complete their construction on time as result of which projects are being continuously delayed.
Managing director of Omkar Realtors and developers Ltd also shares similar views, he said that realty sector is facing a hard time dealing with issues like hike in interest rates, inflation and slowdown in global economy. The interest rate has reached to such a level that the real estate industry will not be able to handle any more rise in the interest rates, it will damage the realty industry badly. There is shortage of apartments in urban areas. The realty developers are not able to complete their construction on time as result of which projects are being continuously delayed.
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