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

The post RBI Keeps Repo Rate at 5.5%: What It Means for Your Home Loan EMIs This Festive Season appeared first on Square Feat India.

Lower Daily Expenses, Higher Savings for Families

The shift of many items to lower 5% and 18% GST slabs means essential products like packaged foods, medicines, stationery, and IT devices will cost less. This directly reduces monthly household expenses, giving families more breathing room to save for bigger investments like property.

Industry voices say this rationalisation will underpin stronger domestic consumption. “The GST cut to 5% or Nil on healthy packaged foods such as paneer, butter, milk, and dry fruits will accelerate consumption in rural and Tier-II markets,” said Aman Choudhary, Executive Director, Anmol Industries Limited.

Boost to Education and Healthcare Affordability

The reforms have exempted school essentials like notebooks, pencils, erasers, and reduced taxes on sports equipment and learning kits. Experts believe this will ease pressure on families with school-going children. Similarly, reducing GST on 33 life-saving medicines and diagnostic kits to 0% will make healthcare more affordable.

“Exempting health insurance in totality is a milestone in public healthcare. Hospitals will now be able to invest more in infrastructure, making cutting-edge care more inclusive,” said Dr. Richa Rai, CEO, Heritage Hospitals.

Relief for Homebuyers: Lower Input Costs in Real Estate

One of the biggest takeaways for the housing market is the reduction of GST on construction materials like electrical goods, transformers, and cables from 18% to 5%. This translates into lower construction costs for developers, which can be passed on to buyers through discounts and festive offers.

“We are optimistic that the recent GST reduction will boost property purchases and overall demand. With the festive season fast approaching, the tax cut has come at an opportune time,” said Vijay Jain, Managing Director, Star Estate.

Combined with stable home loan interest rates and attractive schemes from developers, buyers stand to benefit from both affordability and choice.

Technology, Power, and Renewable Energy to Become Cheaper

The cut from 28% to 18% on IT and consumer electronics will make gadgets, laptops, and digital devices more affordable—important for modern households. For the power and renewable sectors, cheaper solar panels, inverters, and grid equipment mean lower energy costs for homes in the long run.

“Rationalising GST slabs for solar equipment will boost cost competitiveness and accelerate India’s switch to renewable energy,” said Vinod Sharma, Director, Joint Solar.

Why This Matters for Homebuyers

For families planning to purchase homes this festive season, the GST cut is a double advantage:

1. Lower living costs free up more savings.
2. Reduced housing input costs could lead to better deals in the property market.

As industries anticipate stronger demand, experts believe the property market will witness a significant surge in bookings and site visits, making this festive season a golden opportunity for buyers.

Also Read: Cheaper Cement, Stable GST on Homes: What It Means for Homebuyers

The post GST Cuts to Lower Costs for Families, Make Homes More Affordable This Festive Season appeared first on Square Feat India.