Builders expect slowdown in housing demand in short-term on RBI's rate hike

The RBI's decision to hike the benchmark interest rate will make home loans costlier and affect housing sales, especially in affordable and mid-income segments, according to property consultants.

The RBI on Wednesday hiked the key benchmark rate by 50 basis points.

Property consultancy firms Anarock, Knight Frank India, JLL India, Colliers India, India Sotheby's International Realty and Investors Clinic said that the RBI's move was on the expected line to control inflation and this would result in an increase in interest rates on home loans.

Anarock Chairman Anuj Puri said: "The rate hike will push up home loan interest rates,