After a turbulent few years, hopeful signs are emerging that 2024 could bring some relief for the beleaguered Indian homebuyer. Experts predict housing affordability may reach a 3-year high next year.
It’s welcome news after escalating property prices and interest rates stretched budgets to the limit. Though the RBI’s repo rate has held steady at 6.5% since February, analysts say a small reduction could catalyze positive shifts.
“If inflation falls within the RBI’s target range, we may see a repo rate cut in 2024,” explains Religare Housing Finance’s Rahul Mehrotra. “Combined with rising incomes, this should improve affordability.”
Easiloan’s Pramod Kathuria concurs the outlook seems promising, with factors aligning for increased affordability after strained market conditions.
Of course, local dynamics still apply. While Kolkata could see marginal gains, Mumbai’s unabating property boom may dent affordability further. But experts emphasize the overall dip remains minor, given economic tailwinds.
Momentum is building towards a housing rebound. History shows steep changes become unlikely when the repo rate drops below 6%.
“With potential for a 60-80 basis point repo cut, a favorable lending climate may spur housing demand,” says Kathuria. “We could see affordability hit an upswing.”
It’s a glimmer of respite house-hunters have awaited. If expert analysis proves accurate, 2024 could witness the rarest of commodities lately – homes within reach for many more Indian buyers.
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