The Reserve Bank of India's decision to hike the short-term lending rate has brought disappointment among real estate companies. The real estate companies on October 29 said this could hurt economic growth and adversely impact property demand in the ongoing festival season.
The RBI's plan to raise the repo rate by 0.25 per cent could make funds costlier for both developers as well as consumers. It's a disappointing announcement.
It will hurt growth. At present, there is a need to boost growth and expand supply side of the economy, DLF Group, the largest real estate company, said.