Builders threaten to increase property prices following to RBI rate hike

New Delhi:
Pertaining to Reserve Bank of India’s (RBI) decision to hike in key interest rate by 25 basis points, realtors threaten to hike in housing prices. But builders are predicting that this will reduce the housing demand in festive season.
As per the recent state of market interest on housing finance and developers’ borrowings will certainly increase. However, Confederation of Real Estate Developers’ Association of India (CREDAI) Chairman Pradeep Jain said that “in the only previous fiscal year property rates have increased by 15 to 20 percent and we have to deliver it to homebuyers because no option has left for us.”
When asked him regarding the demand for home “he said buyers are aware with the current situation of the market so they understand there is benefit to put their decision on hold due to the rising property prices.” He added that in the near future housing prices will increase by the 30-50percent.