Banks may hike housing loan rates

 Expressing concern about RBI's decision to keep the Bank Rate, reverse repo rate, repo rate and the cash reserve ratio (CRR) unchanged, Goel said: "We were expecting a decline in CRR. This would have resulted in more capital in our hands." 

"With liquidity scenario being comfortable, it was expected that the rates would be left unchanged," Sridar said.

 Real estate developers here were divided in their reaction. Sumit Dabriwal, managing director of United Credit Belani group, said, "It is a natural reaction to the excessive aggression that real estate developers have been showing in land acquisition.

It is somewhat justified, but real estate prices might not be significantly hit as they depend on the relative demand."

 Ravidra Chamaria, chairman of Infinity Infotech Parks, believed that the move might adversely hit real estate in the information technology sector.

"Unlike other real estate projects where developers often use customers' money for  development, those in the IT sector would be adversely hit.
In IT commercial estate, the developer has to complete the building on his own cost and rent the completed building thereby increasing the requirement for bank financing," Chamaria said.