The Reserve Bank of India has kept the repo rate unchanged at 5.50% in October 2025, ensuring EMI stability for existing home loan borrowers while creating strategic opportunities for new applicants seeking competitive financing options.

India's affordable housing finance sector is experiencing unprecedented growth momentum, with industry projections indicating assets under management will nearly double from ₹1.4 lakh crore to ₹2.5 lakh crore by FY28, driven by rising demand from underserved borrower segments.

Housing finance players are expected to leverage RMBS listings to raise up to ₹12,000 crore in FY26, signaling a shift toward transparent debt structures.

Bajaj Housing Finance Limited (BHFL) plans to raise 6,560 crore via an IPO, including new share issuance and a sale. With quick expansion since its founding, a broad loan portfolio, and sound financials, BHFL can capitalise on India's rising housing demand.

The Indian residential property market reached record highs in the March quarter due to steady economic circumstances and buyer confidence. JLL India reported record residential sales despite increased borrowing rates and property costs.

Homebuyers are encouraged by rising house affordability in key Indian cities. The percentage of income needed to pay monthly home loan payments has reduced despite rising mortgage rates over the last year.

In 2022, increasing mortgage fees and house purchase prices in India were countered by growing earnings and the expected percolation effect of a fast expanding economy, keeping end-user demand for residential property in India unchanged until 2023.