RBI repo rate hikes by 40 bps- boon or bane?
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RBI repo rate hikes by 40 bps- boon or bane?

Last updated - Oct 10th, 2022

The RBI repo rate hike in India has left many real estate and finance industry players in awe. With a rise in inflation and an increase in the home loan interest rates, this situation has affected the real estate and finance industries in various ways. The construction costs have taken a toll while the shortage of raw materials due to the pandemic still prevails. This has shaken the construction industry leaving no choice for the developers to sell the properties at relatively expensive rates. The unpredictable rise in home loan interest rates has furthermore affected the homebuying sentiment of people. But reading between the lines, we can’t miss out on one positive impact that underlies this situation. Our co-founder Kenish Shah states with optimism that the real estate industry has the powerful capability to hedge against inflation. So, inflation has actually given a commendable capital appreciation to the properties correspondingly increasing the rental yields of the commercial properties. So, this situation is very profitable for investors to invest in commercial properties as expensive financing at the moment can generate excellent returns in the future.
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