new delhi housing prices are set to go up as real estate developers today said they will pass on the increase in cost of funds to home buyers following the reserve bank of indias decision to hike key policy ratesrbi has put us in a sorry situation it is a vicious circle of higher input cost higher borrowing cost and higher property prices we are bound to pass on the increased cost of funds to our customers confederation of real estate developers association of india credai chairman pradeep jain saidthe rate hikes will further tighten the source of funding required for running the business he addedjain however said increase in interest rate is unlikely to impact demand as there is a shortage of housing in the countrywe urge the apex banknot to hike rates any further as that will certainly choke industrial output thereby putting a halt to economic growth said jain who is also the chairman of parsvnath developersexpressing similar sentiments credai national president lalit kumar jain said the frequent rate hikes will prove to be counterproductive since the move will have a costpush impact rather than proving to be an inflation control measurethe rates of interest are bound to zoom and this will further weaken the sluggish demand in real estate sector he said asking the government for immediate steps to initiate reforms in real estate like transparency and single window clearance systemchd developers managing director gaurav mittal said multiple rate hikes have fueled negative sentiment in the real estate marketbesides the rise in input costs which is a supply side issue cannot be corrected by monetary measures he addedcertain segments of real estate market especially the luxury segment has been slow however the midsegment residential sector is strong and will continue to show growth in the time to come mittal saidemaar mgf land executive president corporate affairs sanjiv saddy asked the rbi not to increase rates further as it will not help industry come out of the quicksandrather it will further burden it industry and may finally become a reason for economic collapse he cautionedin its policy review meeting today the rbi hiked interest rates by 25 basis points the shortterm lending repo and borrowing reverserepo rates now stand at 85 per cent and 75 per cent respectively