Real estate market could be hit further by rising home loans [New Delhi]
The $15 billion real estate market which witnessed a sales drop of 60 per cent in the metros, may further worsen if reversal in rising interest rates for housing is not addressed urgently, a study said.
According to the study conducted by industry body Assocham on ‘Impact of Rising Home Loan Rates’, the housing sector which has declined considerably to 26.6 per cent in 2006-07 may slow down further to touch between 17 to 20 per cent in the current fiscal, due to rising home loans.
The study pointed out that major expansion drive in tier II and tier III and even tier IV cities, for providing dwelling units to neglected lot of society, would trigger the growth of this sector between 40-45 per cent this year, but witness a slow down in metros and large cities by 2010.