The Reserve Bank of India’s Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 5.5%, maintaining stability in borrowing costs for homebuyers. The move, coupled with the earlier 100 basis points rate cut in 2025, ensures that home loan EMIs remain predictable — a major relief for both existing borrowers and first-time buyers.
The RBI has also revised GDP growth upwards to 6.8% and projected inflation at a lower 2.6%, creating a stronger macroeconomic backdrop. This balance of growth and stability is expected to instill confidence across industries, with housing at the forefront.
Industry Reactions
Sukhraj Nahar, President, CREDAI-MCHI
“The stability in lending rates ensures EMIs remain predictable, giving comfort to existing borrowers and encouraging first-time buyers. With affordability central to the MMR region, the festive season presents the perfect time for buyers to act.”
Piyush Bothra, Co-Founder & CFO, Square Yards
“While another cut would have added momentum, the case for further easing remains strong. Lower home loan rates alongside the festive season are already driving a visible pickup in housing demand.”
Vimal Nadar, National Director & Head of Research, Colliers India
“Banks are yet to fully transmit the earlier 100-bps cut, which should happen during this festive season. Combined with GST rationalisation on cement, developers have more room to offer deals — good news for homebuyers in affordable and mid-income segments.”
Amit Prakash, Co-Founder & CBO, Urban Money
“The pause allows space for the impact of past actions to play out. For borrowers, the environment is improving with banks gradually reducing lending rates, helping sustain household consumption and credit demand.”
Amit Goyal, MD, India Sotheby’s International Realty
“Steady borrowing costs help sustain affordability and confidence, particularly as demand for larger, lifestyle-driven homes grows. For investors too, predictability in monetary policy reinforces India’s appeal.”
Anuj Puri, Chairman, ANAROCK Group
“Holding the repo rate at 5.5% keeps EMIs steady but doesn’t directly improve affordability. However, GST rate cuts on cement can reduce home prices by 1–1.5%, saving buyers ₹1–3 lakh, especially in affordable and mid-segment housing.”
Amit Bhagat, CEO & MD, ASK Property Fund
“India remains the fastest-growing economy globally. The RBI’s stance, along with reforms like GST streamlining and infrastructure financing, is expected to maintain positive sentiment in real estate.”
Dr. Samantak Das, Chief Economist & Head – Research and REIS, JLL
“The RBI is signaling confidence in India’s fundamentals. Stability in capital costs ensures organic growth for housing while providing predictability for commercial real estate, which is critical for large-scale investment.”
Manju Yagnik, Vice Chairperson, Nahar Group & Senior VP, NAREDCO Maharashtra
“Predictable EMIs give buyers the confidence to act, especially during the festive season. Combined with GST rationalisation, affordability is improving — a strong enabler for demand across both affordable and premium segments.”
Dharmendra Raichura, VP & Head of Finance, Ashar Group
“The steady repo rate environment helps first-time buyers with manageable EMIs while giving developers the clarity needed for efficient planning and sustained investment.”
What This Means for Homebuyers
- No EMI hike: Predictability in home loan repayments keeps affordability intact.
- Festive advantage: Discounts, GST cuts on cement, and stable financing make this season ideal for home purchase.
- Shift in demand: While premium and mid-segment housing continue to grow, GST relief could revive affordable housing demand.
Also Read: RBI Repo Rate Hike: Real Estate Sector Voices for Stability
