Mumbai's apartment registrations data reveals that demand remains strong despite 5-30% rise in prices in the past five months. Thus, while prices in many pockets in the city are new highs, registrations in October 2009 were the highest in almost two years. he data suggests that the increase in prices has failed to make a dent in residential demand in the city.
Also, the Reserve Bank of India (RBI) increased risk weightage on commercial real estate lending by 100bps, which is likely to result in a 50-100bps increase in borrowing costs. Mortgage rates could also come under pressure owing to inflation-related concerns. Headwinds of higher prices and mortgage rates are likely to weigh on real estate demand in medium term.
No comments:
Post a Comment