IGI Logo

Below is perspective on the performance of real estate in 2021 By Mr. Cyrus Mody, Managing Partner, Viceroy Properties LLP

“The RBI hiking rates by 35 bps was expected. A broader softness in inflation and steady economic growth is the key reason behind the RBI softening its rate hike this time, as compared to the previous hikes of 50 and 75 points. Having said that, we believe the repo rates have peaked with the current hike, and that the central bank is likely to go on a long pause and monitor macroeconomic trends before deciding its next course of action. This may create room for a potential possibility of the RBI slashing rates by the end of the next CY.

This rate hike can have an adverse impact on home sales. However, it seems unlikely considering how we are witnessing strong traction, as most buyers are looking for self-use and not investment. Going forward, we expect the demand for projects developed by reputed names to continue witnessing strong demand with pricing power.”

Above views are of the author and not of the website kindly read disclaimer