Is it time to buy or invest in housing? Yes, say bankers

So, is it the right time to shed fears of slowdown in housing segment and go for the kill?

Bankers believe that housing loan rates which are hovering around 10.50% to 11.50% right now are expected to fall in the next three to six months, which may, in turn, lead to a jump in real estate prices.

Bankers estimate that the Reserve Bank of India (RBI) is likely to reduce its repo rate, which will further bring down rate of interest on housing loans. It will give a fillip to the economy and will fuel demand for housing in next six months.

So, bankers suggest that if the customer is getting property at a good valuation, he must not think twice before buying the property. “It is better to buy a property right now if available at right price. It seems that in next three to six months, interest rates will start to climb down,” said executive director of Bank of India (BoI), N Seshadri.

Yogesh Bhavsar, vice-president of Gujarat Institute of Housing and Estate Developers (Gihed) said, “Those who were sitting on fance will enter the market as lower EMIs will lure them. Once demand goes up, the theory of demand-supply will start ruling the market.”