RBI Rate Hike May Gradually Pressure Affordable Housing

India’s central bank raised a key interest rate by a small amount.

This may eventually make some home loans more expensive, depending on when banks change their rates.

JLL’s Rohan Sharma says the housing market is unlikely to feel a big effect right away.

People buying less expensive homes may feel the change more because their budgets are tighter.

Buyers of premium homes may be better able to manage higher loan costs.

Builders are also facing higher construction and borrowing costs.

They may pass some of those costs on to homebuyers.

Sharma says the effects should become clearer over the next few months.