RBI’s repo rate hike to impact realty sector, says Sushil Mohta

The sixth consecutive repo rate hike by the RBI on Wednesday will impact housing market in India, said said Sushil Mohta, President, CREDAI West Bengal & chairman, Merlin Group. In a response to the announcements made by the Monetary Policy Committee of the RBI, Mohta said, “this is the sixth consecutive time, RBI has increased the repo rate. Although the hike of 25 basis points was expected, there will be an impact on the housing market in India, especially the demand for affordable housing. The Union Budget has not directly given any breather on the tax exemption on principal and interest repayment on the property. The repo rate hike to combat the inflation, would be a little deterrent for prospective homebuyers as apart from home loan interest rate, property prices have also gone up in recent two quarters. However the luxury residential market will not be much affected.