As the inflation rate of the economy is moderating in the recent times, it is expected that there would be no more hikes in the interest rates. Although there was a feeling that already soaring interest rates would go up by another 0.5 perecnt.
"I hope interest rates have peaked. With inflation moderately coming down, I hope there will be no need for a further interest rate hike," Parekh told reporters
The HDFC Chairman, Deepak Parekh, said that the long-term prospects of the commercial real estate market will continue to be positive.
Also, the foreign investment in the real estate market of the country is increasing. The investment in this sector comes through private equity and foreign direct investment (FDI).
Parekh said, "Long-term prospects of commercial real estate market continue to be positive owing to growing opportunities in sectors like healthcare, hospitality, logistics and education."
The demand in the housing segment is large if the prices are marked correctly.
The FDIs in housing and real estate market were also noted to be around 20 percent of the total FDIs in the first quarter of the fiscal year 2008-09.
Parekh said. "Given the huge housing shortage it is unlikely that there will be any saturation in the market for a long time to come." He also recommended to the buyers that they should not leave any chance provided they find a right house.
He also said, "Do not overstretch on a loan and maintain a sufficient buffer," as the interest rates on a loan of over 15 years would certainly fluctuate.
The current scenario in the real estate sector needs some strengthening along with the some modern financial instruments that could help financially distressed developers to overcome bad times.
On HDFC's performance, Deepak Parekh said on the sidelines of a real estate conference, "We have seen a 28 percent increase in loans in the first four months of the year." The home-loan lender's loan portfolio has increased 28 percent as compared to the corresponding period of the previous fiscal.