The rising interest rates will bring down loan affordability of homebuyers, Knight Frank warned on Monday.

A sharp rise in inflation has forced the central bank to raise interest rates and suck out excess liquidity in the market, but it could expose the home segment to a significant headwind, the realty advisory firm said.

The 50-bps hike in the REPO rate in June Monetary Policy Committee (MPC) announcement came on the back of a 40-bps increase in May. Further, the significant 1 percentage point increase in the FY23 consumer inflation estimate to 6.7%, which was higher than RBI’s upper tolerance band of 6%, and it would mean further rate hikes, it said in a statement. Home loan rates are still approximately 150 bps below those prevailing in 2019 and a reversion to those levels will result in an 11.73% increase in the EMI load for the homebuyer, which means a 3.38% decrease in affordability, as per Knight Frank’s Affordability Index.

After deciding to auction unutilised government land, the state government is mulling to increase land values for property registrations. After GST and excise, revenue earned through property registrations is the third highest source of revenue for the government. Continue reading →

To regulate unabated unauthorised constructions in the city, the Greater Hyderabad Municipal Corporation (GHMC) has constituted a special task force (STF) to inspect all the ongoing constructions and initiate action, including demolition. The STF will also have powers to seal the buildings. Continue reading →

Registration of land, properties and vehicles resumed in Telangana with the extended relaxation hours coming into force in the ongoing lockdown from Monday.

The resumption of services came following the decision of the Cabinet to allow registration of lands, properties under the Stamps and Registration Department and vehicles registration under the Transport Department during the working days. Continue reading →