Home loan rate cuts ease borrowing, but affordability remains a challenge in Mumbai, NCR: Report |
Affordability remains a challenge in Mumbai and the National Capital Region (NCR) even as lower home loan rates improve buyer sentiment. The mixed outcome has been observed in a recent real estate report.According to the report by NBR group, the Reserve Bank of India’s cumulative 125 basis points of repo rate cuts during the first half of 2026 have made home loans meaningfully cheaper.However, the benefits reportedly aren’t uniform across the country, as residential property prices across major Indian cities such as Mumbai and the NCR have increased up to 19 per cent year-on-year.Despite affordability concerns, Delhi-NCR has seen a sharp rise in new housing supply, with 39 per cent jump in new residential launches. Infrastructure-led development corridors are reportedly encouraging developers to launch more projects, co-existing with the affordability strain.Bengaluru, on the other hand, has recorded more than 25,000 launches within the first six months, highest in the period. Most of these launches have been in the region’s southern and eastern growth corridors. The report suggests this as an attempt by developers to match supply with growing demand.As per report, while lower interest can support housing demand, they are not enough to solve affordability challenges in major Indian cities.The report suggests increased segmentation of the country’s housing market, with affordability, infrastructure development and supply conditions significantly varying with regions.Additionally, the report mentions India’s real estate sector entering a mature phase, where local market conditions play a greater role than national trends, with cities responding differently based on availability of new housing supply, affordability, and infrastructure expansion.
