Reserve Bank of India has raised the successive rates to control inflation which has scowled the real estate industry. The real estate industry is already having a hard time in dealing with problems like shortage of labour and high cost of input has been threatening for passing rise in the buyer’s rate. The property rates are expected to raise more and it could lead to inflation in the economy. Most real estate developers have experienced fall in the sales of property by 60 per cent to 70 per cent although there is a slight hope of increase in sale in the festive season.
The chairman of CREDAI, Mr Pradeep Jain said that he is not expecting increase in sales in the festive season. He said the increase in rates by the RBI has made funding cost expensive for the buyers and developers. Generally in the festive season the sales are high but the hike has slump the sales. If we believe the reports the so far no inflation has been observed because of this hike by RBI. The cost of home loan is also likely to increase. Experts say that construction activity is likely to loosen further which is a bad news for the economic growth.
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