Affordability is a key factor in demand for homes. A note by property consultant JLL India says that individual purchasing power has improved over the last few years as income has risen at a faster rate than home prices. Importantly, the chart shows the strong inverse relationship (correlation of 82%) between inflation rate and growth in home loans. Therefore, reducing inflation will also infuse confidence in potential homebuyers as it has a strong influence on the decision to borrow to buy a house. In other words, lower inflation elevates consumer confidence through financial stability.