Housing sales may reduce due to home loan interest rates

10 Jun 2022 CW Team

On Wednesday the RBI hiked the key benchmark rate by 50 basis points. The decision of the RBI to hike the benchmark interest rate to make home loans costlier and might affect housing sales, in affordable and mid-income segments.

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

Anarock Chairman, Anuj Puri said that the rate hike will increase the home loan interest rates, which were already increasing after the surprise monetary policy announcement in May.

Interest rates will remain lower than those in the global financial crisis of 2008, which were 12% and above.

The current increase will reflect on residential sales volumes in the upcoming months, with the affordable and mid-segments.

The housing market persists to be largely end-user driven. According to Puri the hike in repo rate was inevitable. They are now entering the red zone and any future hikes will affect the housing sales.

Colliers India CEO Ramesh Nair expects banks to pass on this rise in repo rate in the form of higher home loan rates in the upcoming months.

He advised homebuyers to make the best out of the prevailing home loan rates, as the housing prices are expected to rise.

Image Source

Infrastructure Transport

19 Dec 2025

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..