You can breathe a sigh of relief now!
“The real estate industry was concerned about the increasing repo rate, which had led to higher borrowing costs for individuals and businesses. Within the span of 6 months, the repo rate had increased from 4 to 6.5%, which is a substantial percent increase in a short span. These continued increases in the repo rate could have caused the interest rate on a home loan to exceed the psychologically acceptable threshold of 10%, which would significantly affect buyer perceptions of affordability.
Thankfully there has been no alteration in the repo rate lately but the current situation is still serious, with its effects seen in budget segments leading to a drop in sales numbers in the lower ticket size. Also, the undeniable fact is that this whole aspect is not impacting the luxury segment. As we also provide home loan assistance, we have observed that out of 10 people, 3 to 4 of them go for loans. Nearly 70% of the higher ticket size do not opt for the loan.
As of April 2023, the repo rate remains stable at 6.50%. So, will sales numbers will likely remain steady, and the real estate industry can continue to evolve positively. In conclusion, it is vital to remember that the market is known to bounce back, and this time will be no exception.â€
About Homesfy.in
Homesfy.in is one of the fastest-growing companies in the full-fledged, organised real estate industry. With over 400+ motivated team members spread across Mumbai, Pune, Delhi NCR, and Bengaluru, the firm partners with reputed builders in the country to facilitate their real estate sales. Founded a decade ago, Homesfy has been the preferred channel partner for builders and developers such as Lodha, Godrej, Prestige, Dosti, Runwal, Hiranandani, Piramal, Raymond, and Mahindra, to name a few. In the last financial year, Homesfy collaborated with more than 106 developers.
For the year ended March 31, 2022, the company reported a net profit of ₹3.18 crores, with total revenue of ₹30.31 crores. It reported a profit of ₹1.39 crores, with total revenue of ₹12.39 crores till June 30, 2022.
From December 21 to December 23, 2022, Homesfy Realty (Homesfy.in and MyMagnet.io) sold 8,05,200 equity shares of face value ₹ 10.00 each at a price of ₹ 197.00 apiece. The issue was for retail and HNI subscriptions.
