Affordable Bargain: Can Low-Cost Housing Be A Plausible Choice?

After a slump of more than two years, the real estate industry is looking up to brighter days again. According to Credai’s Housing Price-Tracker released in August 2022, housing prices in India surpassed the pre-pandemic levels in the second quarter of 2022. The average residential prices rose 5 per cent annually in this period. For buyers, this means paying more, at a time when interest rates on home loans are rising. Since May 2022, the Reserve Bank of India (RBI) has raised repo rates by 190 basis points (bps). One bps is a hundredth of a percentage point. So, can homebuyers turn to affordable housing, which also comes with certain incentives? Let’s explore. Falling Affordability According to a report by global property consultant Knight Frank India, released in October, all markets have seen a decline because of the recent rise in median loan rates. This has also...