For millions of existing and prospective homebuyers, this decision brings much-needed predictability in borrowing costs, especially at a time when global uncertainties and rising construction costs have been putting pressure on the real estate sector.

Stable EMIs Bring Relief to Homebuyers

With the repo rate unchanged, banks are unlikely to increase home loan interest rates immediately, which directly translates into:

• No sudden jump in EMIs for existing borrowers
• Better affordability for new homebuyers
• Improved loan planning and budgeting

According to Shrinivas Rao, CEO, Vestian, the move will help keep mortgage rates steady and competitive, cushioning the impact of rising construction costs and supporting overall demand.

A ‘Wait and Watch’ Move by RBI

The RBI’s decision reflects a cautious approach amid global uncertainties, particularly the ongoing West Asia crisis, which has impacted fuel prices and supply chains.

Vimal Nadar, Head of Research, Colliers India, noted that while inflation has seen some upward pressure due to crude price volatility, it remains relatively contained, with projections around 4.6% for FY27, while GDP growth is expected at 6.9%.

This balance between inflation control and growth support is key to maintaining stable interest rates for borrowers.

Boost to Homebuyer Confidence

For homebuyers, the biggest advantage is confidence in long-term financial planning.

Piyush Bothra, Co-founder & CFO, Square Yards, highlighted that stable interest rates bring predictability, especially for mid-income and premium homebuyers, ensuring that demand remains resilient.

Similarly, Dharmendra Raichura, VP Finance, Ashar Group, emphasized that manageable EMIs and stable rates improve affordability, allowing buyers to make purchase decisions with greater confidence.

Positive Impact on Housing Demand

The decision is expected to sustain demand across key housing segments, particularly:

• Mid-income housing
• Premium housing
• End-user driven demand

Manju Yagnik, Vice Chairperson, Nahar Group and Senior VP, NAREDCO Maharashtra, pointed out that a stable rate environment is critical at a time when residential transaction values are already seeing steady growth.

Outlook: Stability for Now

While the current stance supports homebuyers, experts indicate that future rate movements will depend on inflation trends and global factors.

Key factors to watch:

• Crude oil prices
• Supply chain disruptions
• Inflation trajectory

The Bottom Line

RBI’s decision to keep the repo rate unchanged at 5.25% provides EMI stability, improved affordability, and stronger confidence for homebuyers.

In a volatile global environment, this move ensures that the housing market remains steady and accessible, especially for end-users planning long-term investments.

Also Read: RBI Cuts Repo Rate by 25bps: Lower Home Loan Interest for Homebuyers

The post RBI Keeps Repo Rate at 5.25%, Ensures Stable EMIs for Homebuyers appeared first on Square Feat India.

A central expectation from the budget is continued thrust on infrastructure-led development. Projects such as the Delhi–Panipat–Karnal Regional Rapid Transit System (RRTS), a 130-km high-speed corridor that will connect the National Capital Region with Haryana’s emerging cities in under 90 minutes, are being seen as transformative. Beyond easing travel, such corridors are expected to unlock new residential and industrial clusters, supporting metro decongestion and balanced urbanisation.

Alongside physical connectivity, industry voices are calling for fiscal measures that reflect present-day economic realities for homebuyers. With the Cost Inflation Index rising from 240 in 2014–15 to 376 for 2025–26, stakeholders argue that existing home loan interest deductions under Section 24(b) no longer provide the relief they once did, particularly for salaried middle-income families.

Real Estate as a Core Growth Engine

Real estate continues to be a significant contributor to employment and gross value added, and is increasingly viewed as a bridge between infrastructure investment and India’s long-term development vision for 2047. Developers believe Budget 2026 can play a decisive role in strengthening this linkage.

Rohit Gupta, CEO of Mantra Properties and Developers, emphasised the need for formal recognition of the sector.
“Ahead of Budget 2026 it is critical that policymakers recognise real estate as a core growth engine of the Indian economy. Granting industry status will reduce financing costs and unlock deeper credit from banks, lowering capital expenses for developers and ultimately buyers,” he said.

Gupta added that industry status would enable access to external commercial borrowings, attract long-term institutional capital such as pension and insurance funds, and improve liquidity across the sector. He also underlined the urgency of single-window clearances, GST rationalisation, housing affordability measures and calibrated tax incentives to enhance competitiveness and ensure sustainable, inclusive housing growth.

Echoing similar sentiments, Sidharth Pansari, Director of Primarc Group, said the budget could act as a strong confidence booster for the sector.
“The upcoming budget can act as a strong confidence trigger for real estate if it prioritises homebuyer affordability, liquidity support for developers, and faster infrastructure-led urban expansion. A clear policy push in these areas would not only revive end-user demand but also accelerate sustainable, long-term growth across cities beyond the metros,” he said.

Focus on Green Manufacturing and MSMEs

Manufacturing leaders are also looking to the budget for clarity and support, particularly as global markets increasingly demand adherence to sustainability benchmarks. With solar power investments becoming more financially viable and capital costs expected to stabilise around ₹3.5 crore per megawatt, policy incentives could significantly accelerate adoption—especially among MSMEs, which account for nearly 45% of India’s exports.

Industry executives are seeking measures such as enhanced depreciation benefits, simplified tax structures and smoother GST input credit mechanisms to free up working capital and improve competitiveness, while enabling a faster transition towards renewable energy-led manufacturing.

Deepening Non-Bank Credit and Capital Markets

The role of alternative capital providers is another key theme emerging ahead of the budget. Dr. Amit Goenka, Founder, Chairman and Managing Director of Nisus Finance, highlighted the growing importance of non-bank lenders in addressing India’s housing finance gap.

“With India facing a housing shortage of over 20 million units, the role of non-bank lenders has become increasingly critical. NBFCs today account for nearly 25–30% of real estate credit flows,” Goenka said, pointing to the need for policy measures that improve access to both domestic and offshore debt capital.

He noted that while real estate contributes close to 7.3% of India’s GDP, banks remain risk-constrained, creating space for AIF-led private credit to step in. “Category II AIFs alone now manage commitments exceeding ₹11 lakh crore and are emerging as a key channel for long-term capital deployment,” Goenka said. He called for parity in tax treatment for Category II AIFs, clarity on pass-through status, rationalisation of withholding tax on offshore debt, and stronger credit enhancement mechanisms to scale sustainable capital flows into urban development and infrastructure.

A Pivotal Budget Ahead

As expectations rise, industry leaders see Union Budget 2026 as a potential inflection point—one that can simultaneously advance urban connectivity, restore housing affordability, deepen credit markets and accelerate India’s transition towards sustainable manufacturing. If aligned effectively, these measures could help sustain growth momentum and move the economy closer to its ambition of becoming a $5 trillion economy by 2027.

Also Read: Budget 2023 Expectations – What’s in store for real estate in Union Budget 2023?

The post Union Budget 2026: Industry Leaders Call for Urban Connectivity, Housing Affordability and Green Manufacturing Push appeared first on Square Feat India.

Latest industry data presented at a national real estate summit in New Delhi shows that 3BHK and larger homes now account for nearly 45–50% of total housing demand, a sharp rise from around 30% in 2018. This change reflects evolving lifestyle expectations, work-from-home needs and higher disposable incomes, but also raises questions around affordability and access for first-time buyers.

The shift towards bigger homes is mirrored in pricing trends. Homes priced below ₹75 lakh, which made up nearly 60% of all sales in 2021, now represent only about one-third of the market. At the same time, high-value homes are gaining dominance, pushing average ticket sizes higher across major cities.

Despite a 14% year-on-year drop in total housing sales volumes in 2025 across the top seven cities, the overall transaction value rose by 6% to over ₹6 lakh crore. This divergence signals that while fewer homes are being sold, buyers are spending significantly more—marking a clear shift from volume-driven to value-driven growth.

Luxury housing has emerged as one of the strongest growth segments. Homes priced above ₹4 crore now contribute nearly 18–20% of total residential sales, compared to just 1–2% before the pandemic. Even more striking is the surge in ultra-luxury homes priced at ₹40 crore and above, which recorded a 66% jump in sales in 2025, with a majority of such deals concentrated in the Mumbai Metropolitan Region.

Regulators and policymakers emphasised that stable regulations and faster approvals have boosted developer confidence and improved project execution, particularly in large states like Uttar Pradesh, where real estate already contributes 13–15% to the state’s GDP. However, for homebuyers, the implications are clear: choice is expanding at the top end, while affordability pressures persist at the lower end.

On the supply side, nearly 45% of new residential supply now comes from listed and large, Grade-A developers, indicating increasing institutionalisation of the sector. While this improves transparency and delivery standards, it also means projects are increasingly geared towards higher margins and premium segments.

Macroeconomic factors such as rising infrastructure spending, strong private consumption and a low mortgage-to-GDP ratio of around 11% continue to support long-term growth. Yet, the data suggests that the Indian housing market is no longer primarily built around the first-time, budget-conscious buyer.

As cities expand and lifestyles evolve, India’s housing story is being rewritten—with bigger homes, higher prices and a narrowing affordable window. For aspiring homebuyers, especially in metro cities, the message is unmistakable: owning a home is becoming less about finding a cheap option and more about stretching budgets for space, comfort and long-term value.

Also Read: Year-End Investment Surge Pushes Institutional Inflows in Indian Realty to Record USD 8.5 Billion in 2025

The post Bigger Homes, Bigger Bills: Why India’s Housing Market Is Rapidly Moving Out of the Affordable Zone appeared first on Square Feat India.

A repo rate cut is one of the quickest ways to soften the cost of borrowing. For homebuyers, this translates into lower EMIs, especially because most home loans today are linked to external benchmark rates that transmit policy changes faster than earlier systems. If banks pass on the full 25 bps cut, borrowers can expect a meaningful drop in monthly EMIs, improving affordability across segments.

Lower EMIs Can Revive Demand — Especially in Affordable & Mid-Income Housing

Real estate experts view this decision as well-timed and transformational.

Shishir Baijal – Knight Frank India

“We welcome the RBI’s positive move to cut rates by 25 bps, as it signals growing confidence that inflation will remain low on a durable basis. The reduction in borrowing costs should offer timely relief to the real estate sector… We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters.”

Baijal’s point about sequential declines is critical—end-user demand in these segments had begun softening as property prices rose across major markets.

Price-Rise Pressure Meets a Rate-Cut Cushion

According to ANAROCK Research, average housing prices across India’s top 7 cities jumped nearly 10% in 2025. For many buyers, this created a affordability mismatch—even if incomes were rising.

Anuj Puri – ANAROCK Group

“The RBI’s decision to cut the repo rate by 25 bps is a distinct positive… this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments which are highly sensitive to interest rate fluctuations.”

“This rate cut provides a critical cushion to affordability… encouraging aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge.”

Puri also highlights a crucial factor: swift transmission.

“If banks swiftly pass on this rate cut to borrowers, we anticipate a renewed surge in sales velocity carrying firmly into Q1 2026.”

Luxury housing is expected to stay strong irrespective of the rate cut, but the biggest boost will likely come from fence-sitters in the mid and affordable categories.

Developers See This as a Sentiment Lifter for Both Buyers & Builders

Manju Yagnik – Nahar Group / NAREDCO Maharashtra

“A 25 basis point rate cut at this stage will meaningfully support homebuyer sentiment and improve affordability across categories. Demand has remained resilient despite elevated prices, and a reduction in borrowing costs will give fence sitters the confidence to move ahead with their purchase decisions.”

Yagnik adds that developers too gain from a softer rate environment, especially with persistent inflationary pressures in construction materials.

“The real estate sector has been navigating higher input costs… so a softer rate environment will ease financial pressure for both buyers and developers.”

Rupee Depreciation Adds Another Layer to the Demand Story

Dharmendra Raichura – Ashar Group

“The rate cut to 5.25% gives an immediate boost to affordability for home-buyers… At the same time, the depreciation of the rupee makes imported building materials costlier — a challenge for developers’ margins.”

Interestingly, this same rupee weakness creates a positive effect too:

“For NRIs… the weaker rupee makes Indian real estate more attractive and affordable, balancing demand dynamics.”

Developers who manage cost inflation well stand to gain from increased NRI participation and a broader buyer base.

A Macroeconomic Signal of Confidence — With Direct EMI Relief

Dr. Samantak Das – JLL India

“The RBI’s decision to cut the repo rate by 25 bps is a powerful, proactive signal that strategically leverages India’s macroeconomic strength — a robust 8.2% Q2 GDP expansion alongside record-low inflation.”

Das stresses that this is not a reactive move but a strategic push to make growth more inclusive.

“For the residential sector, this is a direct boost to affordability… Given the high penetration of external benchmark-linked loans, the transmission to homebuyers is expected to be quick, providing tangible EMI relief.”

He also notes that India saw price resistance in the affordable and mid-segment categories this year, with projected residential sales 8–9% lower than last year in the top cities.

The repo cut, therefore, is seen as a catalyst:

“This move… will activate the crucial segment of first-time affordable and mid-market homebuyers who have been waiting on the sidelines.”

Das expects demand revival not just in metros but across India’s Tier 2 and Tier 3 cities as well.

What This Means for You: Lower EMIs, Higher Eligibility

If banks pass on the full 25 bps cut:

• Your home loan EMI will reduce across floating-rate loans.
• Loan eligibility increases because your EMI-to-income ratio improves.
• First-time buyers in mid-income segments will find it easier to enter the market.
• Developers get relief through better sales momentum and sentiment stability.

This rate cut has arrived at a moment when the market needed a confidence push—and it may very well carry the housing sector with stronger momentum into 2026.

Also Read: RBI Repo Rate Hike May impact Home buyer sentiments

The post Repo Rate Cut to 5.25%: How Your Home Loan EMI Will Now Fall appeared first on Square Feat India.

India’s housing market may touch a record ₹6.65 lakh crore in total sales value by the end of FY26 — but the number of homes sold may barely rise, according to fresh data from ANAROCK Research & Advisory.

The report points to a sharp disconnect between rising sales values and stagnant volumes, as luxury and high-ticket homes dominate demand in major cities.

Sales Value Soars, Volume Stalls

In FY25, the top seven cities collectively sold 4.22 lakh housing units worth ₹5.59 lakh crore — a 6% jump in value despite a 14% drop in sales volume.
For FY26, ANAROCK estimates that overall housing sales value will grow nearly 20% year-on-year, surpassing ₹6.65 lakh crore, while unit sales may grow no more than 4%.

“After peaking in FY24, overall absorption has slowed amid global and domestic headwinds,” said Dr. Prashant Thakur, Executive Director and Head of Research at ANAROCK.
“However, the total value of homes sold continues to climb as buyers shift to premium and luxury segments.”

Half-Year Numbers Already Cross 50% of FY25 Levels

During H1 FY26, over 1.93 lakh units were sold across the top seven cities for a combined ₹2.98 lakh crore, already 53% of FY25’s total sales value.

City performance varied sharply:

• NCR achieved 74% of its FY25 sales value in just six months.
• Chennai followed at 71%, while MMR lagged at 45% of last year’s total.

City-Wise Breakdown: Sharp Contrasts

• NCR: ~29,175 units sold in H1 FY26 worth ₹75,859 crore, compared to FY25’s 58,775 units (₹1,02,810 crore).
• Chennai: ~11,670 units sold worth ₹12,370 crore (FY25: 17,765 units, ₹17,387 crore).
• MMR (Mumbai Metropolitan Region): ~61,540 units sold worth ₹1,00,000+ crore (FY25: 1.44 lakh units, ₹2,23,220 crore).
• Bengaluru: ~29,955 units sold worth ₹43,627 crore (FY25: 62,440 units, ₹79,819 crore).
• Pune: ~32,030 units sold worth ₹30,324 crore (FY25: 74,200 units, ₹66,058 crore).
• Hyderabad: ~22,345 units sold worth ₹30,646 crore (FY25: 48,980 units, ₹59,243 crore).
• Kolkata: ~7,655 units sold worth ₹5,429 crore (FY25: 16,580 units, ₹10,753 crore).

Luxury Segment Leads the Charge

Nearly 42% of all new housing supply in H1 FY26 was in the luxury and ultra-luxury segments, ANAROCK data shows.
The steady appetite for premium homes — especially among high-income end-users and NRIs — has offset the slowdown in mid- and affordable housing categories.

“Luxury continues to drive value growth, while affordability challenges have limited momentum in the lower segments,” Dr. Thakur noted.
Average residential prices across cities have risen sharply, adding further pressure on first-time homebuyers.

Market Outlook

ANAROCK projects that the full-year FY26 performance will reflect a “value-led growth” cycle rather than volume-led expansion.
While housing demand remains healthy, the mix is shifting — fewer homes are being sold, but at much higher ticket sizes.

Also Read: Housing Sales Plummet by 28% in Q1 2025 Across India’s Top 7 Cities

The post Home Sales May Hit ₹6.65 Lakh Crore in FY26 — But Volumes Could Flatline appeared first on Square Feat India.

This move isn’t just about the environment — it could make homes cheaper and projects faster by stabilising sand supply and cutting down on inflated prices.

What Exactly Is M-Sand?

M-Sand stands for Manufactured Sand — a scientifically produced alternative to river sand. It’s made by crushing hard stones like granite or basalt in high-precision machines, then washing and grading the particles to match natural sand quality.

So, instead of scooping sand from rivers, M-Sand is made in factories, ensuring consistent quality, controlled grain size, and zero environmental damage.

How M-Sand Is Produced

1. Crushing: Large stones are crushed into sand-sized grains using Vertical Shaft Impact (VSI) machines.
2. Washing & Sieving: Dust and impurities are removed, leaving behind clean, uniform particles.
3. Grading: The sand is sorted by size — coarse for concrete, fine for plaster or mortar.
4. Testing: The end product must conform to Bureau of Indian Standards (IS 383:2016, IS 1542:1992) for safety and durability.

Environmental Benefits

Natural river sand extraction has caused:

• Erosion of riverbanks
• Falling groundwater levels
• Flooding and ecological imbalance

M-Sand solves this by:
Reducing illegal mining
Using controlled quarrying methods
Allowing sand production near urban centres (less transport pollution)
Saving river ecosystems and groundwater recharge

How It Makes Construction Cheaper

Here’s where the policy becomes truly people-centric.

• Stable Supply = Stable Prices:
  River sand prices often swing wildly — especially during monsoon or government crackdowns on mining. M-Sand can be produced year-round, bringing predictable and stable costs for builders.
• Local Manufacturing = Lower Transport Costs:
  Sand doesn’t need to travel from distant riverbanks; it can be made near construction clusters. This means logistics savings of 10–20% for developers.
• Bulk Availability = Faster Construction:
  Builders don’t need to halt projects waiting for sand supply. Continuous availability leads to faster completion of homes, reducing interest costs and benefiting buyers.
• Affordable Housing Gains:
  In large housing projects, sand alone accounts for 15–18% of raw material cost. Even a 10% price reduction in sand can make homes ₹50–₹100 per sq. ft. cheaper — a meaningful saving for middle-income buyers.

Why Builders Prefer M-Sand

Construction professionals already report these practical benefits:

• Uniform particle size gives better concrete strength
• Lesser impurities mean fewer cracks and shrinkage
• Higher bulk density improves durability
• Works well with modern mixing technology

In short — M-Sand is not just cheaper, it’s technically superior to much of the river sand available in the market today.

How Maharashtra’s Policy Boosts Adoption

The revised policy dated October 27, 2025, brings multiple incentives:

• Each district will get at least 50 M-Sand units, with power to increase this number as per demand.
• Only Maharashtra-based companies can set up such units on government land.
• Units must meet strict BIS quality norms, failing which licenses can be suspended for six months or cancelled permanently.
• M-Sand plants must start production within one year of approval.

The Bigger Picture — From Rivers to Factories

India’s construction sector consumes nearly 500 million tonnes of sand each year. Dependence on natural sources has led to environmental degradation and erratic costs.

By shifting focus to M-Sand, Maharashtra aims to:
Protect its rivers
Lower the cost of housing
Encourage local entrepreneurship
Generate employment in rural and peri-urban belts

In Short

M-Sand is more than a policy — it’s a bridge between sustainable environment and affordable housing.
With Maharashtra’s proactive stance, your next home could be built faster, greener, and at a lower cost.

Also Read: Affordable Housing Gets a Boost as Maharashtra Tweaks Sand Policy; Shorter Leases Aim to Curb Over-Extraction

The post 🏗️ What Is M-Sand? Maha’s New Policy Pushes for Artifical Sand An Alternative to River Sand, Will It Reduce Your Home Prices? appeared first on Square Feat India.

India’s Global Standing in Q1 2025

The table below shows how India compares to the top 15 markets globally in terms of annual price growth.

Source: Knight Frank Research

Why India’s Prices Are Rising

According to Knight Frank, the growth is fueled by:

• Strong End-User Demand – More buyers are purchasing homes for actual use rather than speculation.
• Rising Incomes – Steady wage growth in urban India is helping more families afford property.
• Improved Economic Conditions – Better GDP growth, stable inflation, and improving job markets.
• Lower Borrowing Costs – Gradual cuts in interest rates have made home loans more affordable.

On a quarterly basis, India recorded a 2.9% increase in housing prices, reflecting sustained buyer confidence.

What This Means for Homebuyers

From a buyer’s perspective, rising prices can be a double-edged sword:

• If You Already Own Property: Your asset value is appreciating, potentially boosting equity.
• If You’re Looking to Buy: Affordability might become a challenge, especially if wages don’t keep up with rising prices.

Mid- and premium housing segments are projected to remain strong in 2025. First-time buyers in these categories may want to move quickly before prices climb further.

Global Context: India’s Resilience

In Q1 2025, 87% of markets worldwide posted positive annual growth. While Turkey, North Macedonia, and Portugal led the rankings, India’s steady, demand-driven growth stands out for its stability and low speculative risk.

In contrast, Mainland China and Hong Kong SAR posted the steepest declines, showing that not all markets are benefiting equally from global economic recovery.

Looking Ahead: 2025 and Beyond

Knight Frank expects India’s housing demand to remain healthy if borrowing costs continue to stabilize.
For prospective homebuyers, the first half of 2025 could be a strategic entry window before further acceleration in prices. Watching the Reserve Bank of India’s interest rate policies will be critical for timing purchases.

Also Read: Service Class Dominates Homebuying

The post India Ranks 15th Globally in Housing Price Growth as End-User Demand Drives Market appeared first on Square Feat India.

For homebuyers, this decision directly translates into predictable EMIs and continued affordability of home loans—a crucial factor as the festive season approaches. While developers were hoping for a rate cut to spur even more demand, the current stability provides a conducive environment for long-term planning and financial confidence.

Why This Matters for You as a Homebuyer

Industry experts believe the RBI’s decision will help preserve affordability and sustain housing demand, particularly in mid- and premium-segment homes, which have seen steady interest despite recent global headwinds.

Prashant Sharma, President of NAREDCO Maharashtra, called the move a “cautious yet balanced approach” that keeps homebuyer sentiment strong. He added that while the sector welcomes stability, a calibrated rate cut in the future could further support growth—especially in affordable housing.

Rajiv Agrawal, Promoter & Co-Founder of Saarathi Group, highlighted that unchanged borrowing costs will aid Mumbai’s wave of redevelopment projects, making long-gestation cluster and society redevelopments more financially feasible. This means buyers can expect timely project deliveries and fresh housing supply in urban areas.

Similarly, Virendra Vora, Promoter & MD of Excel Infra Construction LLP, said stable rates are a “positive signal for Mumbai’s next wave of urban regeneration,” making it easier for developers to launch premium redeveloped homes in high-potential zones like Bandra Reclamation.

Bank Loan Rates & Market Momentum

Shishir Baijal, CMD of Knight Frank India, noted that with some banks already reducing home loan rates, policy stability will encourage affordability—especially in mid- and low-income segments. He said, “More transmission of past cuts is underway, which will further support housing demand.”

Dr. Samantak Das, Chief Economist, JLL, explained that after 100 basis points of rate cuts this year, holding rates now gives the system time to fully pass on benefits to buyers. He stressed that stability helps avoid over-reliance on rate cuts and instead builds a market driven by genuine demand.

However, the affordable housing market is facing challenges. Anuj Puri, Chairman of ANAROCK Group, pointed out that sales in the top metros fell by 20% year-on-year in Q2 2025, and average residential prices have surged 39% in two years. The ongoing US tariffs could impact MSMEs—the key customer base for affordable homes. Still, he expects developers to roll out festive offers and flexible payment plans to improve affordability.

Confidence, Festive Season, and Long-Term Growth

Multiple developers and analysts agree that stability will reinforce buyer confidence ahead of the festive season.

• Manju Yagnik, Vice Chairperson of Nahar Group, believes steady rates will support sustained demand in high-growth markets by keeping EMIs manageable.
• Dharmendra Raichura of Ashar Group said unchanged rates, combined with infrastructure development in regions like MMR and Thane, will keep housing demand strong.
• Sunny Bijlani of Supreme Universal added that policy stability will attract both domestic and NRI buyers, especially as urbanisation and lifestyle aspirations rise.

From the luxury segment perspective, Amit Goyal, MD of India Sotheby’s International Realty, said that with GDP growth forecast at 6.5% and inflation trending softer, housing momentum will stay “cautiously positive.”

What Experts Want Next

While most agree that holding rates now is prudent, there’s anticipation for a possible rate cut in the October policy review.

• Piyush Bothra of Square Yards said the onus is now on banks to ensure full transmission of past cuts to homebuyers.
• Vimal Nadar of Colliers India highlighted that with inflation under control, upcoming quarters could see further reductions passed on, boosting buyer activity during the festive season.
• Amit Prakash Singh of Urban Money stressed that a cut in October could act as a “timely catalyst” to boost festive demand.
• Shrinivas Rao of Vestian added that the RBI’s neutral stance will encourage fence-sitters to make investment decisions.

Bottom Line for Homebuyers

The RBI’s decision may not have brought a fresh cut in rates, but it keeps the ground steady for you to plan your purchase without fear of sudden EMI shocks. With the festive season around the corner, stable policy, possible future cuts, and developer incentives could make the next few months a strategic window for homebuyers.

Also Read: RBI Cuts Repo Rate by 25bps: Lower Home Loan Interest for Homebuyers

The post RBI Holds Repo Rate at 5.5% — Home Loan Interest To Remain As It Is appeared first on Square Feat India.

Inflation Eases, Expectations Rise

With inflation cooling to 3.16% in April 2025 — well below the RBI’s 4% target — and GDP growth stabilizing, economists and real estate leaders say the central bank has room to continue its accommodative stance.

“The RBI is expected to provide major relief to homebuyers by reducing the repo rate by 25 bps,” said Pradeep Aggarwal, Chairman of Signature Global. “This will encourage first-time homebuyers and investors to re-enter the market.”

Positive Sentiment in Real Estate

The real estate sector, especially the affordable and mid-income segments, is highly sensitive to changes in interest rates. Lower EMIs can make homeownership viable for millions who were priced out due to rising property prices and borrowing costs.

“With each rate cut, affordability improves significantly,” noted Piyush Bothra, CFO of Square Yards. “Even a 1% interest rate drop can increase a homebuyer’s purchasing power by nearly 10%.”

According to Anurag Goel of Goel Ganga Developments, “A 50 bps cut would reduce EMIs by about ₹1,200 on a ₹50 lakh home loan over 20 years — a meaningful difference for salaried homebuyers.”

Real Estate Sector at a Crossroads

Despite long-term potential, the real estate market is grappling with challenges — a 28% drop in residential sales in India’s top 7 cities (Q1 2025 vs Q1 2024), tight lending conditions, and high construction costs.

“Lower borrowing costs could stimulate stalled demand in affordable housing,” said Anuj Puri, Chairman of ANAROCK. “But transmission is key — banks must ensure end borrowers actually benefit.”

Affordable housing, once dominant, now makes up only 18% of total residential sales (down from 38% in 2019), according to ANAROCK. Yet a 19% drop in unsold affordable units signals there’s still strong demand from genuine end-users — if financing becomes easier.

What Homebuyers Should Watch For

• Rate Transmission: Not all banks pass rate cuts equally. Repo-linked loans benefit faster; MCLR-linked loans may take longer.
• Refinancing Opportunity: If cumulative rate cuts hit 75–100 bps, borrowers with older loans could save ₹6–7 lakh on a ₹50 lakh loan by refinancing.
• Tenure vs EMI: Banks may prefer shortening loan tenures instead of reducing EMIs. Homebuyers should negotiate for better terms.

“Now is a good time for homebuyers to explore options, compare rates, and check reset clauses,” said LC Mittal of Motia Group. “If you’re planning to buy or refinance, this policy cycle could be your moment.”

Bottom Line for Homebuyers

With inflation under control and macroeconomic indicators stable, the stage is set for a potential repo rate cut in the June MPC meeting. If banks swiftly transmit this to home loan rates, homebuyers could see lower EMIs, better loan eligibility, and enhanced affordability — all of which can be game-changers in today’s high-priced housing market.

Also Read: RBI repo rate hike

The post Homebuyers May Get EMI Relief Soon as Experts Predict RBI Repo Rate Cut in June MPC Meet appeared first on Square Feat India.

In a significant move that spells good news for homebuyers across India, the Reserve Bank of India (RBI) has slashed the repo rate by 25 basis points to 6%, marking its second consecutive cut. The decision, aimed at supporting economic growth amid global uncertainties, has been widely welcomed by real estate stakeholders for its potential to stimulate housing demand and improve affordability—especially for end-users in the affordable and mid-income segments.

Here’s what the real estate and financial leaders have to say:

A Welcome Move to Boost Buyer Sentiment

Prashant Sharma, President, NAREDCO Maharashtra, said the rate cut “comes as a welcome and timely move” and will act as a much-needed catalyst to revive both consumption and investment cycles. He emphasized its impact on improving affordability and boosting sentiment in the affordable and mid-income segments.

Shraddha Kedia-Agarwal, Director at Transcon Developers, called it a “strategic push” toward economic revival. “Lower interest rates make home loans more attractive, especially in metros like Mumbai. This will go a long way in supporting buyer sentiment and end-user driven purchases,” she added.

Boman Irani, President, CREDAI National, hailed the move as “pro-growth,” especially with inflation expected to moderate to 4.5%. He noted it would enhance borrowing capacity and uplift housing demand, particularly in rate-sensitive categories.

Transmission Still a Concern

Anuj Puri, Chairman, ANAROCK Group, struck a cautious tone. “Banks have not fully transmitted earlier rate cuts due to funding pressures and high NPAs. If they do now, it will help homebuyers—especially first-timers looking at affordable housing,” he noted. He also flagged a 17% average rise in housing prices across top 7 cities year-on-year, which makes rate transmission crucial for EMI relief.

Affordability and Access to Housing in Focus

Anurag Goel, Director, Goel Ganga Developments, said the move is especially beneficial for EMI-dependent homebuyers. “This will strengthen buyer confidence and improve conversion rates from inquiry to booking, particularly in Tier 1 and Tier 2 cities,” he noted.

Chintan Sheth, CMD of Sheth Realty, added that lower rates would “usher benefits across affordable, mid-income, and premium segments.”

Jash Panchamia, Promoter of Suraksha Smart City, emphasized the positive impact on PMAY beneficiaries and the EWS segment, saying it supports the government’s vision of ‘Housing for All’.

Real Estate Developers: Ready to Launch and Expand

Parthh K Mehta, CMD of Paradigm Realty, said this move creates opportunities in luxury housing, enabling developers to launch “iconic projects backed by favorable financing.”

Bhavesh Shah, JMD of Today Group, noted that the rate cut could significantly drive sales in growth hubs like Navi Mumbai.

Mohit Goel, MD, Omaxe Ltd., called it a “catalyst for demand revival,” adding that lower borrowing costs will ease financial burdens for both homebuyers and developers.

Macro Trends, Tariff Concerns, and Future Outlook

Vimal Nadar, Head of Research at Colliers India, explained that while global tariff escalations remain a concern, the RBI’s “accommodative” stance will help boost domestic consumption and housing demand.

Amit Goyal, MD, India Sotheby’s International Realty, agreed: “If passed on to borrowers, this cut will help the real estate sector navigate global economic uncertainty.”

Anshul Jain of Cushman & Wakefield emphasized the positive shift from “neutral” to “accommodative,” reinforcing the RBI’s growth-supportive intent and likely future rate cuts.

Shrinivas Rao, CEO of Vestian, said, “The policy shift and easing inflation suggest mortgage rates could drop further, enhancing real estate demand.”

Sanjay Daga, CEO of Anex Advisory, pointed out that further cuts may be needed to offset tariff pressures and stock market volatility.

For FD Investors: Time to Reassess Strategy

Aman Gupta, Director of RPS Group, warned that declining rates mean FD investors should revisit their strategies. He recommended exploring small finance banks for better rates, considering tax-efficient instruments like SCSS, and maintaining an emergency fund while diversifying into hybrid funds cautiously.

Bottom Line for Homebuyers:

• Lower EMIs could be on the horizon—if banks pass on the cut.
• First-time and budget-sensitive buyers stand to benefit the most.
• Developers gain breathing room, which may lead to new launches and faster project completions.
• Real estate remains a safe, long-term asset, especially amid global uncertainty.

Whether you’re looking to buy your first home or refinance an existing loan, this rate cut offers an opportunity to reassess your home finance strategy and potentially act before prices or interest rates climb again.

Also Read: RBI makes Homebuyers happy, Repo rates unchanged

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