RBI repo rate hike to impact affordable housing demand, say experts

The impact will be short-term, and the boost in budgetary allocations towards infrastructure will keep the demand robust

Although the repo rate hike of 25 basis points (bps) is on expected lines, it will have an impact on the demand for affordable housing in India, experts told Business Standard. However, the luxury housing segment does not see any significant change post the rate hike.

"With repo rates now at 6.5 per cent, there could be some repercussions on housing uptake as home loan interest rates will head further north. The rates had already crept up after five consecutive rate hikes over the last year. This will add to the financial burden on homebuyers as apart from home loan