Lower home loan interest rates to continue for the next 12 months: Keki Mistry, HDFC
NEW DELHI: Vice-chairman and CEO HDFC said that the existing home loan rates are the lowest in the last four decades. He also predicted that the lower interest rates will be still the same for another six to twelve months and it will give the best home buying opportunity to the potential customers.
He further added “The home loan rates have been the lowest in the last four decades. For the next six to 12 months, the benign interest rates environment will continue. The growth in the economy and real estate has been sharp. The factors like the RBI infusing much-needed liquidity into the sector, various concessions are given by the Government and the developers like the stamp duty relaxations have extended the best buying opportunity for the homebuyers. The trend will continue with the lowest interest rates regime”.
Mistry also said that the RBI may experience some pressure owing to the higher inflation that will reduce its ability to reduce the rates further. He also said that the banks are now differentiating between the strong and weak developers for lending. This step will improve the quality of balance sheets and avoid over-leveraging. Besides that, staying well-capitalized will help the developers float well in the market.
He also said that the investments in creating co-working spaces will grow in the future. He predicted more consolidation to happen at the project level.
He spoke to the NAREDCO’s ‘Real Estate and Infrastructure Investors’ Summit (REIIS) – 2020 in association with APREA.
