Real estate companies and banks have been severely affected by the RBI’s diktat on high interest rates.
Real estate majors admit to a sharp drop in bookings ever since ever since the lending rates were increased.
DLF has admitted to a 70% drop in residential property sales by May-June
this year. The DLF Chairman, K.P.Singh was confident that demand would
be back on track once interest rates are taken back to their previous levels.
Mumbai based Akruti Nirman too is eager to see interest rates dropping
to affordable levels.
The current slowdown, according to the company
spokesperson, is not due to the price rise, but the hiked interest rates
ICICI Bank is apprehensive of a fall in mortgage–backed loans following the high interest rates, affecting the growth of the industrial sector at large.
The Bank has reported a drop to the extent of 5% in the home loan segment,
against 25% growth recorded in the same quarter last year.
