Home loan EMIs set to go up

Mumbai, Aug 05 Home loan rates are now expected to go up and settle around 8 per cent per annum, which can put a short-term psychological dent on the demand for the mid and affordable housing segment, but we won't see that continuing for long.

Amit Goyal, CEO, India Sotheby's International Realty said, "We are still in the comfort zone of a single-digit rate. With pent-up demand for housing post-COVID, strong economic growth and a steady job market, we expect the demand momentum to continue in India's residential housing segment, especially in the top 6 cities, where office leasing and absorption has been strong."

Pankaj Pal, Group Executive Director, AIPL, said, "The lending and deposit rates are likely to firm up. It may have a slight impact, but we don't foresee a major impact on the demand side in the housing market. It is likely to remain robust as real estate is largely viewed by buyers as the best investment option considering the volatility in the equity market, gold as well as other investment avenues."

Saransh Trehan, Managing Director, Trehan Group, said, "RBI has already raised interest rates a couple of times this year, and it had very little or rather no impact on the demand for real estate as the Indian economy is one of the best performing economies globally and the consumer sentiment is on a high. As a result, the demand for all kinds of properties continues to remain high and the scenario is unlikely to change in the near future."

V Swaminathan, Executive Chairman, Andromeda loans and Apnapaisa, said, "This lending rate calibration by the RBI could signal a downward trend in borrowers looking for home loans, as both new & existing home loan EMIs are set to go up, ushering in a wait-and-watch attitude among new homebuyers."