Realty firms and property consultants today said both consumers and developers are likely to be affected by the hike in key policy rates by RBI as loans would become dearer, though the impact would be marginal.
“It (hike in repo and reverse repo rates) will affect lending to the developers to some extent,” Global realty consultant Knight Frank Chairman Pranay Vakil said.
He said the hike, which came into effect, will also have impact on customers who have availed home loans.
“For the young people, loan repayment period will increase while EMIs will remain same (while) for old people EMI will increase marginally,” Vakil said adding demand for real estate too would be impacted “marginally”.
Raheja Developers’ Managing Director Naveen Raheja too said the RBI’s move would impact both companies and consumers.
“Cost of money will increase for the end user as well as developers,” he said.