Despite the RBI's repo rate hike which will make home loans more expensive, realty experts feel that the demand for homes county-wide will not witness massive impact. While home loan rates are likely to settle at around 8 per cent, the existing demand in the market is expected to keep the industry buoyant.1

As per ANAROCK Research, approximately 1.85 lakh units were sold in H1 2022 across the top 7 cities. The repo rate now stands at 5.4 per cent, thus reaching the pre-pandemic levels. While inflation has partially eased as compared to the surge in April, it continues to be above the RBI’s target.  2

....

• 1. Anuj Puri, Chairman, Anarock says, “This is the third consecutive rate hike in the last two months and finally marks the end of the all-time best low-interest rates regime - one of the major factors that drove housing sales across the country since the pandemic. This whammy comes along with the inflationary trends of primary raw materials, including cement, steel, labour that had recently led to a rise in property prices. Together, these factors – rising home loan rates and construction costs – will impact residential sales that did reasonably well in the first half of 2022.”  
• 2. Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers says, "With this, the repo rate has now increased by 140 bps in the last three months, with the rate hovering above pre-pandemic levels. Domestic economic activities remain resilient despite the challenging global financial and geopolitical environment, leading to the withdrawal of the accommodative stance by the RBI. The RBI kept its growth target unchanged at 7.2 per cent for FY 2022-23. With respect to the rising repo rate, several banks have already begun rising home loan rates and this trend is expected to continue.”