Rate Hike Fears and Urban Collapse: Indian Real Estate's Twin Headwinds

The repo rate holding steady at 5.25%—its lowest since mid-2022—has created a window for savvy borrowers. Banks are aggressively marketing hybrid home loans that lock in a fixed EMI for an initial 2-5 years, offering certainty while principal balances are highest. With 73.37% of the home loan market still on floating rates, these semi-fixed products are gaining traction as lenders deploy excess liquidity from a record $127 billion in FCNR(B) deposits. For...