Interest hike may pinch property market

“The hike in repo and reverse repo rates by 25 basis points will have a sentimental impact on demand, but it may not slowdown the demand in its actuality,” Jones Lang LaSalle India Chairman and Country Head Anuj Puri said. Home buyers might delay their decision to own property, which would prolong the completion of the transaction, Puri pointed out.

On housing prices, Puri said it would remain stable in the metro cities.  DLF Group Executive Director Rajeev Talwar said, “The growth of economy is strong, so we do not expect any negative impact on the property demand and prices.”

Talwar said he did not forsee any rise in interest rates. Parsvnath Developer Chairman Pradeep Jain said that there could be a short-term impact because of rate hikes but would not have major impact on demand, which is directly related to growth in the economy.

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