RBI hike to hit ‘premium’,not cheap realty

“RBI’s measures will reduce speculative activity in the high-end real estate segment (above Rs 75 lakh). Prices of luxury housing will remain under control given that these measures will reduce the leeway for developers to increase

prices,” Unitech Managing Director Sanjay Chandra said.

Chandra,however,said that there would be lesser impact on the demand of affordable housing and mid-income segments.

“Affordable and mid-income housing will not be much impacted”.

He noted that the property prices have gone beyond the previous highs only in Mumbai and in some select high-end developments in Gurgaon in the resale market.

Chandra,however,said that prices of Unitech properties were still below that of 2007 level,but it is certainly higher than rates during recession.

On RBI directing banks not to give home loans more than 80 per cent of the value of the house,Chandra said: “80 per cent cap is not going to impact genuine demand.”

He pointed out that some low down-payment schemes have been introduced recently in Mumbai. “RBI probably felt that such schemes could fuel speculative demand.”