You can breathe a sigh of relief now!
“The real estate industry was concerned about the increasing repo rate, which had led to higher borrowing costs for individuals and businesses. Within the span of 6 months, the repo rate had increased from 4 to 6.5%, which is a substantial increase in a short span. These continued increases in the repo rate could have caused the interest rate on a home loan to exceed the psychologically acceptable threshold of 10%, which would significantly affect buyers’ perceptions of affordability.
Thankfully, there has been no alteration in the repo rate lately, but the current situation is still serious, with its effects seen in budget segments, leading to a drop in sales numbers in the lower ticket size. Additionally, the undeniable fact is that this whole aspect does not impact the luxury segment. As we also provide home loan assistance, we have observed that out of 10 people, 3 to 4 of them go for loans. Nearly 70% of the higher ticket size do not opt for loans.
As of April 2023, the repo rate remains stable at 6.50%. So, sales will likely remain steady, and the real estate industry can continue to evolve positively. In conclusion, it is vital to remember that the market is known to bounce back, and this time will be no exception.”
