âMortgage rates were the lowest in the past four decades. Over the next six to twelve months, the favorable interest rate environment will continue. Growth in the economy and real estate has been strong.
Factors such as the RBI infusing much needed liquidity into the industry, various concessions granted by government and developers, such as stamp duty easing, have extended the best buying opportunity for homebuyers. The trend will continue with the lowest interest rate regime, âhe added.
Mistry warned that the RBI could face some pressure from higher inflation that will reduce its ability to cut rates further. He also observed that banks now distinguish between strong and weak developers for loans, thus improving the quality of balance sheets, avoiding over-indebtedness and staying well capitalized will help developers to float well in the market.
He also predicted that investments in creating coworking spaces will increase in the near future and that more consolidation will occur at the project level.
He was speaking at the Real Estate and Infrastructure Investors Summit (REIIS) of NAREDCO – 2020 in association with APREA.