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RBI Hikes Repo Rate: Housing Sales Face Festive Hurdle
8 Oct
Summary
- Industry bodies fear rising home loan costs will impact festive season sales.
- RBI increased the repo rate by 25 basis points to 5.50%, signaling more hikes.
- Despite concerns, underlying housing demand and buyer sentiment remain strong.
Real estate industry bodies CREDAI and NAREDCO have voiced concerns that a recent 25 basis point increase in the repo rate by the Reserve Bank of India (RBI) to 5.50% will lead to higher home loan costs. This could potentially reduce housing sales during the crucial upcoming festive season, despite underlying demand being strong.
Industry leaders noted that the RBI's decision, made amid global uncertainties and inflationary pressures, signals that further rate hikes may occur. While acknowledging the potential impact on sales, they emphasized that long-term buyer sentiment and the fundamental need for homeownership should support market resilience. Recent data indicates a slight annual growth in housing sales across India's major cities.
