Realty sector foresees black Diwali post repo rate hike
The repo rate hike by the Reserve Bank of India (RBI) by 25 bps seems to have spoiled the festive spirit of the real estate sector.
The repo rate hike by the Reserve Bank of India (RBI) by 25 bps seems to have spoiled the festive spirit of the real estate sector.
With the US and European debt crisis affecting sentiments across the world, the Indian real estate sector is likely to see a gloomy phase in the next 12 months.
Any residential property, even with all legal safeguards are apparently in place, is ultimately built on land. One cannot automatically assume that this land did not have previous owners.
Though the Reserve Bank of India has laid out strict due diligence standards for banks for sanctioning loans to the real estate sector, industry experts believe lending to the sector will not decline.
Noida extension seems to be taking its toll. India’s largest home loan provider State Bank of India (SBI) said on Friday, July 8, it will not finance real estate projects which are mired in disputes over acquisition of land.
Hours after the Supreme Court order, several worried investors at Shah Beri village rushed to the offices of developers demanding their money back or a house at an alternative site.
Standard & Poor’s Rating Services on Monday, July 4, said the surge in real estate prices in some pockets in India could emerge as a credit risk for banks.
The Reserve Bank of India has laid out strict and tedious due diligence standards for banks in sanctioning loans to the real estate sector.
The proposed Real Estate Regulation Bill may be delayed.
The Indian Property Show opened at Dubai World Trade Center, Hall No.4.