Gurugram, Oct. 8 -- Developers expect strong end-user demand and infrastructure-led growth to cushion the impact of higher borrowing costs after the Monetary Policy Committee raised the repo rate to 5.50% from 5.25% on Wednesday, the first increase since February 2023.

The hike is expected to marginally increase home-loan costs, but developers said the impact should remain manageable for buyers with stable incomes and those purchasing within their affordability limits.

Confederation of Real Estate Developers' Associations of India (CREDAI) president Shekhar Patel said the rate hike may have some impact on festive sales, but home purchases need to be viewed as long-term decisions. "We should not look at repo rate changes in isolation. Wh...