New Delhi: Hiking of the key policy rate by the Reserve Bank of India (RBI) will hit property sales, particularly in the residential segment, real estate developers said while expressing disappointment at the move.
The RBI raised the key policy rate by 0.25 per cent to 8 per cent in a bid to curb inflation – a move that may translate into higher EMIs and push up the cost of borrowing for the corporate.
Realty firms and consultants hoped however that this would be the last round of monetary tightening by the apex bank.
“We are very very disappointed. This will bring more suffering to developers community,” Confederation of Real Estate Developers Association of India (CREDAI) Chairman Lalit Kumar Jain told PTI.
“It seems that market will see its bottom in terms of sales and liquidity, and then there may be an effort to revive the economy and market in an intense manner,” he said, adding that the developers would look forward to the March review. Read more