In a further blow to the dampened Diwali spirit of the realty sector, the RBI raised interest rates on today but said it was likely to hold off on further increases as it expects high inflation to ease beginning in December.
Housing Development Finance Corp, India’s largest mortgage lender, plans to raise its fourth property fund from overseas investors, said two people close to the development.
The festivities around Navratra and Diwali are known to cheer up the sentiments of the property market.
Property registration in India’s biggest real estate market Mumbai continued its slide in August and touched a twenty-seven month low.
Continuous rise in interest rates by the banks is dampening the effort of the real estate companies to reduce debt by selling non-core assets.
Non-banking finance companies (NBFCs) may soon be asked to raise the bar and adopt the tough asset classification criteria that banks currently use to identify bad and dodgy loans on their books.
Eight realty stocks slipped 0.75% to 4.61% on Friday, August 26, at 14:43 IST on BSE on worries higher interest rates could dent demand for residential and commercial property.
DLF is selling a 13-acre plot in Gurgaon, Haryana, as part of its plan to ease its debt burden through asset sales.
As India’s realty sector goes through a liquidity crunch with banks tightening lending norms and property sales dropping, real estate developers are turning to alternative channels of funds.
DLF on Tuesday, August 2, reported a 12.81 per cent decline in its consolidated net profit for the first quarter ended June 30 at Rs.358.36 crore.