Interest Rate Hike: Home buying dreams been crushed a little further
- Mr.Sanjay Dutt, CEO – Business, Jones Lang LaSalle India
" Everything goes up again with this move, cost of construction, which will be passed on to home buyers, as well as the cost of taking a home loan. These hikes have so far not made any impressive dent in inflation.
Whatever difference we can see can be attributed to a high base effect and the tight monetary policy being followed, rather than to the hikes in lending rates.
Construction activity will decrease and the real estate sector will be forced into an even more defensive position. It is conceivable that quite a few smaller builders will eventually find themselves edged out of the business altogether by the combined onslaught of increased production costs and reduced demand for their offerings.
However, the most worrisome impact is not the one on the business sector, but the one on the common man. Every Indian dreams of buying a home, and this humble dream has just been crushed a little further."
- Mr.Sanjay Dutt, CEO – Business, Jones Lang LaSalle India
" Everything goes up again with this move, cost of construction, which will be passed on to home buyers, as well as the cost of taking a home loan. These hikes have so far not made any impressive dent in inflation.
Whatever difference we can see can be attributed to a high base effect and the tight monetary policy being followed, rather than to the hikes in lending rates.
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| Mr.Sanjay Dutt, |
Construction activity will decrease and the real estate sector will be forced into an even more defensive position. It is conceivable that quite a few smaller builders will eventually find themselves edged out of the business altogether by the combined onslaught of increased production costs and reduced demand for their offerings.
However, the most worrisome impact is not the one on the business sector, but the one on the common man. Every Indian dreams of buying a home, and this humble dream has just been crushed a little further."
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