Rising lending rates has cast its shadow on the otherwise booming real estate market of Punjab,Haryana and Chandigarh, with prices of residential property falling by up to 15 per cent in the last couple of months.
The potential home buyers postponing their decision of entering the real estate market in the wake of high lending costs. The private financers are suffering a lot as their large investments are blocked in the absence of buyers.
Rates were expected to further drop by another by 15 per cent in next few months in light of the reduced participation of buyers. Lending rates for home loans have go up by over 2 per cent in the last one year because of tight monetary policy followed by apex bank RBI.
"The buying activity has been affected adversely in Chandigarh and transactions of high value properties in Chandigarh have almost come to a halt. Property rates were ruling high by 30 to 40 per cent, which also necessitated certain amount of correction in prices.In Haryana, property experts attributed the sluggishness in the demand for property to unprecedented hike in collector rates. In Panchkula alone, the collector rates have been raised by 50 per cent for residential property and over 200 per cent for industrial estates.
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