The impact of rising interest rates and high property prices seem to reflecting in the pace of growth of housing loans in India.
According to the RBI's (Reserve Bank of India's) data on sectoral deployment of bank credit, housing loans for the month of January 2012 grew by 13.2%, over the year-ago period. This is slower that last year, that is, January 2011, when housing loans grew by 15.1% over the previous year.
This was reflective of the general slowdown in Indian economy. Rising interest rates could be one of the factors. But high property prices may be a more relevant reason for the slowdown. The general expectation is that property prices should go down if there is a surplus in supply. But whether that actually happens at the ground level is any one's guess.
According to the RBI's (Reserve Bank of India's) data on sectoral deployment of bank credit, housing loans for the month of January 2012 grew by 13.2%, over the year-ago period. This is slower that last year, that is, January 2011, when housing loans grew by 15.1% over the previous year.
This was reflective of the general slowdown in Indian economy. Rising interest rates could be one of the factors. But high property prices may be a more relevant reason for the slowdown. The general expectation is that property prices should go down if there is a surplus in supply. But whether that actually happens at the ground level is any one's guess.
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