Will the real estate sector be hurt by high home prices and rising interest rates in 2023–2024?


The housing industry is intricate. A multitude of things influence prices.

Purchasers of homes have never had it so good as they did after the pandemic.

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The cost of housing is influenced by the federal funds rate and other market rates, which affect current mortgage rates.

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The repo rate was 4% throughout the epidemic, but the RBI increased it to 5.40%.

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Both buyers and sellers are clearly impacted by rising interest rates.

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It is anticipated that rising property values would cause rental rates to rise.

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Rising rates won't have a significant impact on property values and housing costs if the economy expands quickly enough.

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The momentum in housing demand across India's main cities is anticipated to continue in this fiscal year, according to a recent CRISIL analysis.

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