RBI move won?t affect demands: Developers

Real estate industry players are apparently not losing much sleep over the Reserve Bank of India?s (RBI) decision to hike lending rates for commercial banks which is expected to raise borrowing rates for consumers and developers alike.

On Tuesday the federal bank announced hikes of 25 basis points on repo rates (at which it lends to commercial banks) to 6.25 per cent and the reverse repo rates by 25bps (which it pays to banks for deposits) to 5.25 per cent.

Most industry insiders had anticipated the move since inflation remains a matter of concern for the federal bank and it was obvious that the RBI would be increasing the repo and reverse repo rate to check the rising prices.

Parsvnath Developers Limited chairman Pradeep Jain said that the move of RBI will not have any impact on demands as demand is directly related to economic development and the Indian economy is growing and sentiments are positive.

?What is required is to increase supply to curb inflation. With adequate supplies in the markets for all kind of buyers, I am confident that we will not see any impact in our sales in near terms,? he added.