How do repo rate changes affect home loan affordability in Gurgaon’s real estate market?
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The repo rate, determined by the Reserve Bank of India (RBI), directly influences how banks set home loan interest rates. When the RBI reduces the repo rate, borrowing becomes cheaper, leading to lower EMIs and enhanced affordability for homebuyers. This encourages more people to invest in properties, boosting sales in markets like Gurgaon, where premium projects such as Hero Homes The Palatial are in demand. Conversely, a repo rate hike increases interest costs, causing some buyers to delay purchases. Understanding repo rate trends allows potential homeowners to time their investments smartly, taking advantage of favorable loan conditions and maximizing their property value in the long run.