Repo Rate Hike By RBI To Make Home Loans Costlier: Experts
Indian real estate sector stands at an exciting juncture. Having weathered the COVID-19 storm, it had to deal with new challenges in 2022. The rising cost of inputs, the current geopolitical situation, and the mounting interest rate are all problems that the sector had to face. In addition, IMF predicted that India’s economic growth would increase by 6.8% in 2022, down from 7.4% in July to 8.2% in January. This was followed by World Bank reducing India’s GDP forecast for the current fiscal year to 6.5% earlier this month.
The current geopolitical situation and the uncertainty surrounding us also encourage people to invest in real estate. Most people see real estate as a real asset. The volatility in the markets and changing landscape drive many to invest in real estate, enabling them to fetch good resale value and appreciation in the long run. Investment in various infrastructure projects by the government is another enabler of this trend.
Real estate has witnessed its ups and downs. Investors again realise the benefits of investing in real estate since it is not considered speculative or high-risk. In terms of quantity and quality, growth is anticipated to be good in 2023. According to industry experts, interest rates will play a significant role in altering the real estate business.
