Vinit Dungarwal, Director at AMs Project Consultants Pvt. Ltd shared his perspective, “The mid-cycle rate hike by RBI has taken everyone by surprise. The growing inflation rates and the current geo-political environment necessitated this move. From a real estate perspective, this move will dent the current demand momentum and add to the woes of developers. The developers were already grappling with the growing prices of raw materials and this move will make home loan costlier.”
Aditya Kushwaha, CEO and Director, Axis Ecorp was of the view that this may incentivize the fence-sitter to make the most of the current schemes and take the plunge. “RBI had been maintaining an accommodative stance so far but now it has raised the policy rate by 40bps to 4.40%. As a result, the SDF rate was increased to 4.15% and MSF rate to 4.65%. The geopolitical situation caused by Russia's invasion of Ukraine is weighing on the economy and steps are being taken to mitigate the impact. The current rate increase will have a direct impact on the EMIs but we are still bullish about the real estate sector.”
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