Rising Interest Rates, Realty Prices Mark Doom for Home Loans

Rising real estate prices are resulting in a decline in home loan demand. Although Indian realty market is witnessing a compounding growth, owning a home is still a tough dream for many middle class Indians. Earlier (in 2002-2006), the easy availability of home loans was accelerating the realty growth drive.

But, there is now substantial decline in the demand for home loans. Major banks have blamed the rising property rates as a reason behind the slash. According to a recent survey, the prices of furnished and semi-furnished houses in the metros and upcoming metros are becoming sky scrapping day by day.