RBI says, “This overstates the realizable value of the property, as stamp duty, registration and other documentation charges are not realizable. Consequently, the margin stipulated gets diluted”. But property experts are highly predicting that this step will slow down the process of home sales too. “In the short run, the decision will put additional strain on the home buyer, at least till economic conditions improve”, says Pranab Dutta, Vice Chairman of Knight Frank, a property consultant firm, as quoted by Economic Times.

Industry experts say that this step will hamper the real estate sector too. Anshul Jain, CEO of DTZ India, an real estate consultant says, “The buyers might want to delay their purchase decision till the time they have arranged for such funds in turn the developers would have inventory that would not be sold.”

“It is unfortunate that inspite of clarity on importance of the need to provide shelter, RBI has issued such anti-housing guidelines,” says Lalit Kumar Jain, National President of Confederation of Real Estate Developers Association of India.