Ray of hope for real estate as banks start to back off from government papersThere could be a silver lining in the dark real estate clouds as banks soften their trading in government papers following repeal of the interest rate cap. According to real estate analysts, financial institutions will be in a position to analyse a borrower’s risk and price their products accordingly. “We are starting to see banks moving away from subscription in government papers following the repeal of the interest rate cap. They can then price their financial packages based on borrowers’ risk,” says Beatrice Mwangi, a real estate analyst at Cytonn Investments. Unfortunately for the sector, recovery will depend on how fast the current backlog of finished products can be cleared from the market.

Source: Standard Digital January 16, 2020 06:56 UTC