CREDAI, NAREDCO warn higher repo rate may hit housing sales
In short
CREDAI and NAREDCO said housing sales may slow after the RBI raised the repo rate by 25 basis points. They said higher home loan costs could hurt festive-season buying, even though demand is still strong in major cities.
This matters for homebuyers, builders, and lenders. The report does not say how much sales could fall or whether the rate rise will continue.
What the reporting says
CREDAI and NAREDCO warned that higher home loan costs may weigh on housing sales as the RBI raised the repo rate by 25 basis points. The industry bodies said the move could dampen demand in the upcoming festive season, even as they cited strong underlying demand and slightly higher annual housing demand in major cities. It is not stated how large the sales impact could be.
Why it matters
CREDAI and NAREDCO warned that the RBI’s 25-basis-point repo rate increase could raise home loan costs and soften housing sales during the festive season. The concern is centered on buyers in major cities, where demand had recently shown a slight annual rise. The reporting also notes that longer-term sentiment may still support the market, but the near-term sales impact is not quantified.