‘Interest rates at historic lows, housing demand extremely robust’

HDFC chairman Deepak Parekh on Thursday said interest rates in the country were at the bottom and reiterated that the demand for housing in India continues to remain “extremely robust”. “There is sufficient confidence in the central bank that any increase in interest rates will be calibrated and non-disruptive,” he added.

“The RBI has articulated that growth will continue to remain a priority and the RBI has also indicated that despite inflation currently being at the upper band of its target range, it will be manageable and the RBI at this juncture envisages some easing of prices going forward,” Parekh said at the CII Real Estate conference.

“Further, it is important to understand that a housing loan is a long-term loan. Over this period, interest rate cycles may move up and down. A customer who wants a home will not hold back because interest rates inch up slightly.”

On “extremely robust” housing demand, he said, “The greatest mark of confidence has been the strong pipeline of new launches, surpassing pre-pandemic levels. The demand for housing continues to be from both, first-time homeowners as well as those moving up the property ladder — generally into larger homes or houses other locations.”