Residential sector in India has witnessed a slowdown following a spurt in property prices and spiralling interest rates on home loans by about five per cent in last four years, an Assocham study said.
With the repricing of interest rates in the last four years from 7 per cent to 12 per cent and the sky rocketing prices of the property, there has been a slowdown in the residential property market, it said in a paper on Realty Check.
Expressing concern over increasing role of speculators in the real estate sector, Assocham said: it is necessary to check the flow of speculative money.
Commenting on the home loan GDP ratio, Assocham said this ratio is stagnated between five to six per cent in the country as 90 per cent Indian borrowers are first timers, while in the US and UK the ratio was as high as 50 per cent.
More : business-standard.com
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