Housing prices likely to hike by 5-10%, soon

Builders are anticipated to increase following the Reserve Bank of India’s decision to hike key policy rates by 25 basic points, so relatively housing prices may also rise by 5-10 percent in the coming 3-6 months.
Pradeep Jain Chairman of Confederation of Real Estate Developers’ Associations of India (CREDAI) said that “Real Estate prices may hike in the upcoming three months by 5-10 percent in the entire country.”
He added that as the hike in repo and reserve repo rates may result in increase in housing interest rates for builders and the same would affect to the home buyers too. Whereas demand for properties wouldn’t be affected by the hike in home loan interest rate. Jain said supply would be affected, as the increase in interest rates would impact the liquidity situation of small developers.
According to the market experts steady increase in interest rate from last fiscal year would leave a huge impact on the demand and government should have to take initiative to increase in supply of housing.