The sentiment in the realty market is dampened due to the hike in the interest rates, which will further affect the demand. Gagan Banga, the spokesperson of the eminent real estate player, Indiabulls, foresees 5 to15% corrections in the price of real estate properties in coming couple of months, and the price correction will depend on the location and the projects.

The real estate market constantly has been under stress since the last six months. In some markets the sales has declined up to 70%. The prices have declined up to 20% in the overrated markets like Greater Noida, Gurgaon, Kundli, and Ghaziabad in the National Capital Region and in several suburbs of Mumbai.

As per Sanjay Verma, the South Asia MD of Cushman & Wakefield, credit has no alternative. The developers are unable to acquire funds, and the land dealings have come to an end because of this reason. The developers have changed their plans to raise funds, and few of them have restricted their plans for expansion.

Several developers, mainly the smaller developers, are afraid of the fact that they may not be able to finish their projects due to lack of funds. The small developers have already exhausted the bank credit, and now they apprehend that the growing interest rates would compel them to borrow money with a higher cost from NBFCs and private moneylenders. The home loan rates are probably to ascend, therefore, the advance amounts given by the buyers also will come to an end earlier than expected, and the speed of the project execution will get affected.