Lower home loan EMIs add to buyers' interest

Real estate developers across India's top markets are reporting a rise in buyer enquiries, as banks slash home loan rates in response to recent repo rate cuts.

- PRACHI PISAL

"On the demand side, there has been a marked increase in enquiries from potential homebuyers, particularly in the mid-income segments (homes priced between ₹40 lakh and ₹1.5 crore)," said Niranjan Hiranandani, chairperson of Hiranandani group and of the National Real Estate Development Council, under the Ministry of Housing and Urban Affairs.

Home purchase affordability improved across key Indian markets in the first half (H1) of calendar year (CY) 2025, after the Reserve Bank of India (RBI) reduced the repo rate by 100 basis points (bps) during the period, according to real estate consultancy Knight Frank India.

Last month, State Bank of India cut its home loan rate by 50 bps. The bank now offers home loans at 7.5-8.45 per cent, down from 8-8.95 per cent earlier. Canara Bank reduced its rate to 7.4 per cent from 7.9 per cent, while Bank of Baroda trimmed it to 7.45 per cent from 7.5 per cent.