Construction costs up, so are demands for home loans

Buying a new property is going to get more expensive as builders and developers pass on the rise in construction costs to consumers.

ENL Property has been cited by Defi as saying that costs – related to raw materials and the fuel prices – have all soared by 30%.

Media reports say several contractors face the risk of closure and laying off part of their teams due to the sluggish demand that the pandemic has caused.

However, local banks say demand for home loans is on the rise – up by 100% according to Neelaksh Bhardwaj of SBI (Mauritius) Ltd.

Pritee Ombika-Aukhojee of Bank One was cited as saying that the repayment capacity of the client is important and is carefully monitored.