Rising interest rates unlikely to dent growth in home sales: Developers

Homebuyers are strategising their financial preparation for a home purchase in the wake of increased home loan interest rate

Rising interest rates are unlikely to compress growth in residential sales in the quarters ahead, observe property developers, fund managers, and real estate consultants. Many still believe rates are not as high as witnessed in the past decade. They say home prices are still affordable.

“Right now, there is no impact on demand. Our best-performing zone (Mumbai/Thane), in fact, witnessed not only rate increase but a stamp duty hike by 1 per cent. Notwithstanding interest rate and stamp duty headwinds, our projects in Mumbai and Thane received exceptional demand,” said Mohit Malhotra, managing director (MD) and chief executive officer (CEO), Godrej