Enthusiasm

Rising repo rates impact homebuyer enthusiasm at highly anticipated property show

The recent hike in the repo rate by the Reserve Bank of India will have an impact on the purchase of properties at the real estate exhibition to be held this week in Navi Mumbai. The rise in the interest rate on mortgages will impact the enthusiasm of buyers. Builders Association of Navi Mumbai (BANM), the body of developers, considers the development to have a minor impact on the overall business during the Expo.

While the central bank’s measure is meant to control inflation, many homebuyers say they’ll sometimes wait to take a call before buying a dream home.

BANM is holding its property show after a three-year hiatus and expects buyers and developers to benefit. Haresh Chheda, chairman of BANM, said that the developer body could not hold real estate exhibition in 2019 due to the GST issue, then there was a pandemic for two years. “Buyers, as well as developers, have been waiting for the BANM real estate exhibition for a year. Now their wait is over,” Chheda said.

He assured that home buyers looking for affordable homes will have an opportunity at the 20th BANM Real Estate Expo to be held from May 13-16 in Vashi. Chheda said houses between Rs 20 lakhs and 25 lakhs will be available in Karjat and Khopoli in the real estate exhibition.

However, the sudden rise in interest on home loans will certainly have an impact on the mood of the buyer. Devang Trivedi, president of BANM, admits this will have an impact. However, he said it will be negligible. “It won’t have much of an impact on the enthusiasm across the whole business,” Trivedi said.

With a number of infra-projects nearing completion, developers expect a good response over the four-day expo. Trivedi expects the four-day expo to be worth around Rs 1,000 crore for developers.

Apart from affordable homes, buyers will also get high-end homes during the show. “There are projects near the NRI complex along Palm Beach Road. A few luxury properties will be available in Sanpada along Palm Beach Road which will cost a few crores,” Trivedi said, adding that the redevelopment project in Vashi by Arihant and Godrej offers premium category homes.

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Posted: Wednesday May 11th 2022, 6:50 PM IST