#RealtyNewsRoundUp: RBI Hikes Repo Rate To 6.25%

For the first time in four-and-half-years, the Reserve Bank of India (RBI) on June 6 raised repo rate by 25 basis points to 6.25 per cent on inflation concerns. The hike by the central banks mean bank would start increasing interest rates soon, making the cost of availing of home loan costlier for homebuyers.

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The government had been working to free the housing sector of corruption and middlemen to ensure people get their own houses without facing troubles, Prime Minister Narendra Modi said on June 5 while addressing beneficiaries of the Pradhan Mantri Awas Yojna (PMAY) through a video conference. He also said that use of latest technology was ensuring faster building of houses for the poor in rural and urban areas at affordable cost.

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Come August and those looking for affordable homes in one of the world’s most expensive property markets, Mumbai, would get a chance to grab an affordable home, thanks to the Maharashtra Housing and Area Development Authority (Mhada). Up for grabs would about 1,000 units spread across localities such as Borivli, Ghatkopar, Mulund, Mankhurd, Goregaon and Vikhroli when the Mhada starts the process to sell affordable homes in the first week of July.

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To diversify its portfolio, Pune-based ABIL Group has a made a property purchase in London’s prime location of Trafalgar Square. The property, 5 Strand, has been bought for £100 million (approximately Rs 900 crore) from American global investment management corporation Black-Rock. The developer aims to construct a world-class hotel on this property with 210-240 keys inventory for an additional investment of over £80 million.

Source: Media reports