Rising rates to impact post-pandemic recovery in real estate sector

The rising rates will depress demand and slow down sales

The real estate sector, which is highly dependent on bank financing for both builders and customers, is worried that rising rates will impact post-pandemic recovery and slow down sales.

Anuj Puri, chairman of real estate advisory firm Anarock, said the hike was anticipated with inflation edging higher in the aftermath of the Russia-Ukraine war and surging oil prices. "A hike was inevitable, but we are now entering the red zone. Any future hikes will reflect markedly on housing sales," he warned.

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The increasing