India, Oct. 7 -- The RBI's 25-basis-point repo rate hike comes largely as expected, against the backdrop of persistent inflationary pressures and geopolitical uncertainty stemming from the West Asia crisis. The higher cost of borrowing could weigh on consumer sentiment and discretionary spending, while creating some affordability pressures, particularly in interest-rate-sensitive housing segments. This could have implications for housing demand, especially during the crucial festive season when home purchases typically pick up, real estate experts said.

Commercial real estate, however, is likely to remain relatively insulated, with demand continuing to be anchored by structural requirements from global capability centres (GCCs), technolo...