Following two repo rate hikes by the RBI, commercial banks wasted no time in passing this to end consumers by increasing interest in housing loans.
Following the Reserve Bank of India’s surprise 40-bps rise in its benchmark repo rate and a 50-bps increase in the cash reserve ratio, most banks have increased their lending rates.
Not surprisingly, Hyderabad recorded the highest 5 per cent annual jump in price movement.
The two leading realty hotspots -- MMR and NCR -- accounted for over 48% of the total sales in the top seven cities, with NCR witnessing an over 114% yearly jump
Housing sales in the second half of the last calendar year witnessed the highest volume since the first half of 2016.
Housing sales in MMR grew by 72% Y-o-Y, but the same grew by a whopping 197% in Hyderabad to 25,410 units as against 8,560 units sold in 2020.
Housing sales in NCR down 22 per cent in January-August; sales up 17 per cent in 7 cities: PropEquity
Housing sales in Chennai grew by 27 per cent to 9,611 units from 6,988 units, while Pune saw a growth of 22 per cent to 43,987 units from 34,437 units.
During January-August 2020, the MMR saw sales of Rs 41,353 crore only because of the adverse impact of the COVID-19 pandemic.
Baijal said the market seems to have factored in the very low likelihood of a complete lockdown as was seen last year due to the ample availability of the COVID vaccine.
The Reserve Bank for the second time in two months has raised its benchmark interest rate by 25 basis points on inflationary concerns.