RBI
has observed continuous decline in the share of home loans in the
bank’s credit in this fiscal despite the fact that total
outstanding credit to home loans rose by Rs. 179,857 crore in last 4
years period. The reason may be the economic slowdown and the
drastically growing real estate prices.
“While the slowdown in
economy had its impact, high inflation ate into household budget and
at the same time real estate prices went up sharply, leading to a
slowdown in demand,” said Brinda Jagirdar, GM and head of economic
research at State Bank of India. “RBI too played some role by
tightening the prudential norms and enhancing the provisioning requirement so as to prevent a housing bubble.”
The data gathered by
Department of Registration and Stamps, shows 18.5% decline in
registration of new homes in Mumbai in 2011-12.
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