For homebuyers, the biggest immediate impact is stability in home loan Equated Monthly Instalments (EMIs). Since most floating-rate home loans are linked to external benchmarks like the repo rate, today’s hold means no upward revision in borrowing costs. Existing borrowers avoid any EMI shock, while new buyers gain predictability to plan purchases without fear of sudden rate hikes.

Industry experts and real estate leaders have welcomed the move for providing much-needed certainty in an environment of rising economic optimism post-Union Budget 2026-27, improved trade agreements, and infrastructure momentum.

Prashant Sharma, President, NAREDCO Maharashtra, noted: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector… policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, added: “Stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity… reinforcing real estate’s appeal as a stable, long-term asset class.”

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group, highlighted: “This policy stability brings much-needed clarity on financing costs… we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”

Shilpin Tater, Managing Director, Superb Realty, said: “The RBI’s neutral stance… will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized: “Stable borrowing costs… create a supportive environment for housing demand, especially in metropolitan markets… This policy continuity will help sustain residential demand and support long-term housing affordability.”

Dhruman Shah, Promoter, Ariha Group, observed: “The continued pause on interest rates provides much-needed predictability… positioning the sector for stable, long-term growth.”

Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., stated: “Unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes.”

Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, provided deeper insight: “The unchanged rate… preserves stability in borrowing costs, supporting consumer spending, housing demand, and business investment… The residential market… experienced a sales slowdown in 2025… the combination of accelerated GDP growth, moderating housing price appreciation, and the prospect of additional rate cuts is expected to revive housing sales volumes in 2026.”

Anuj Puri, Chairman – ANAROCK Group, pointed out a balanced view: “RBI’s decision… means that home loan EMIs will not change… This will keep buyers engaged but does nothing to lift demand further… A rate cut would have potentially brought at least some fence-sitters back to the market.” He noted subdued affordable housing trends and called for targeted fiscal measures.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, said: “An unchanged rate has ensured that EMIs on floating-rate loans remain steady, offering predictability… This clarity on borrowing costs has supported affordability and enabled homebuyers… to plan long-term purchases with greater confidence.”

Dharmendra Raichura, VP and Head of Finance, Ashar Group, concluded: “An unchanged rate environment brings stability to funding costs… From a homebuyer’s perspective, predictable lending rates preserve EMI visibility and reinforce purchase confidence.”

While the hold shields EMIs from rises and supports overall sector momentum amid a robust 7.4% GDP growth outlook for FY26, experts note that affordability challenges persist in segments like affordable housing. Many anticipate potential future cuts if inflation remains controlled, which could further ease EMIs.

This policy continuity underscores the RBI’s calibrated approach—balancing growth support with inflation vigilance—offering homebuyers a window of EMI stability to make informed decisions in a strengthening economy.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post How RBI’s Unchanged Repo Rate at 5.25% Keeps Home Loan EMIs Steady: A Boost for Homebuyers’ Financial Planning appeared first on Square Feat India.

The realty indices opened flat to marginally positive, indicating that investors were largely holding their positions rather than reacting sharply at the opening bell.

Opening Trade: Stability Over Aggression

At the market open, real estate stocks showed measured movement, mirroring the broader market’s guarded tone.

• Large-cap developers opened steady, providing a stable base to the sector
• Mid-cap realty stocks traded mixed, with selective buying visible
• Volumes were moderate, signalling a wait-and-watch approach

The early trade suggested that investors were positioning cautiously, aware that interest rate cues would play a decisive role in shaping sentiment through the day.

Stock-Specific Action in Early Trade

While the sector as a whole remained range-bound at the open, select developer stocks stood out:

• Companies with strong residential exposure and steady sales momentum attracted early interest
• Stocks with recent run-ups saw mild profit-booking
• Balance-sheet strength and execution visibility remained key differentiators

Overall, the opening session was more about stock selection than sector-wide momentum.

RBI Keeps Repo Rate Unchanged at 5.25%: Market Reacts

The tone of trade shifted modestly after the Reserve Bank of India announced that it would keep the repo rate unchanged at 5.25%.

The decision was largely in line with market expectations and was received with relief rather than surprise, especially by interest-rate-sensitive sectors like real estate.

Following the announcement:

• Realty indices held on to their opening levels
• Selling pressure remained limited
• Select stocks saw incremental buying interest

The absence of a rate hike helped maintain confidence across the sector.

What the Repo Rate Decision Means for Real Estate

An unchanged repo rate carries important implications for the real estate market:

• Home loan rates are likely to remain stable, supporting buyer sentiment
• Developers benefit from predictable borrowing costs
• Financing conditions for ongoing and upcoming projects remain manageable
• Demand visibility, especially in residential housing, stays intact

For the real estate sector, stability in interest rates is often more valuable than aggressive easing, as it allows both buyers and developers to plan with confidence.

How the Market Read Today’s Signals

The combination of a steady market open and a neutral RBI decision reinforced the view that the real estate sector is currently in a phase of consolidation rather than correction.

Investors appeared reassured by:

• Policy continuity
• Absence of inflation-related shocks
• Stable macroeconomic signals

As a result, realty stocks avoided sharp swings and traded with composure through the session.

What to Expect Going Forward

In the near term, real estate stocks are expected to:

• Trade in a range with selective upside
• Respond more to company-specific developments than macro triggers
• Remain sensitive to banking and NBFC stock movements

Over the medium term, stable interest rates could continue to support residential demand and keep investor interest alive in quality developers.

The Bigger Picture

Today’s market action underscored a key reality for the real estate sector: stability is strength. With interest rates unchanged and demand fundamentals holding firm, real estate stocks appear positioned to weather short-term volatility while awaiting stronger growth triggers.

For investors and homebuyers alike, the message from today’s trade was clear — the environment remains supportive, even if momentum builds gradually.

Also Read:  Realty Stocks End Week on a Festive High: Big Developers Shine, Mid-Caps Lose Sparkle as Diwali Momentum Fades

The post 🏗️ Realty Stocks Stay Resilient as Markets Open; RBI’s Steady Repo Rate Lends Support to the Sector appeared first on Square Feat India.

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.

Dr Niranjan Hiranandani, MD, Hiranandani Group
The status quo in repo rate by RBI is governed by a mix of global and domestic factors reflecting better anchoring of inflation and nimble liquidity management. With an outpaced GDP growth and a downward inflation curve trajectory, India’s economic performance is noteworthy despite geo-economic shocks. Development of infrastructure, increased labour employment, enhanced fiscal expenditures, improved governance, and regulations along with structural policy reforms reflect the RBI’s multifaceted approach to strengthening India’s financial stability. RBI indicates emphasises the need to consider macro-economic broad risk factors while keeping customer-centricity in mind while deploying effective monetary policy. Hence, retaining an accommodative stance even under the benign geo-political mood is a step in the right direction. The uptick in new project launches, fresh supply of housing units, soaring sales in luxury housing, record high property registrations, and an average price appreciation of 7% demonstrates the strong real estate market performance index in the backdrop of a conducive market scenario. An increase in government capital expenditures towards building physical infrastructure and fuelling liquidity management will continue to boost construction activities. This will increase employment, growth in GDP, housing demand, and economic stimulation. Industry highly recommends differential policy treatment to combat negative growth in the affordable housing segment. A calibrated approach including fiscal intervention, tax exemption or cross-subsidization is necessary to restore growth in affordable housing.

Anuj Puri, Chairman – ANAROCK Group
With the fundamentals of the Indian economy remaining strong despite all global headwinds and inflation well under control, the RBI once again decided to keep the repo rates unchanged at 6.5%, thus extending the festive bonanza that it gave to the homebuyers in its last two policy announcements. Thus, homebuyers retain their advantage of relatively affordable home loan interest rates.
If we consider the present trends, the housing market has been unstoppable, and unchanged home loan rates will help maintain the overall positive consumer sentiments. Given that housing prices have risen across the top 7 cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers. Going forward, we can expect the momentum in housing sales to continue, significantly aided by the unchanged repo rates which will keep home loan interest rates attractive and also signal ongoing robustness of India’s positive economic outlook.

Ayushi Ashar – Director at Ashar Group & Member of Managing Committee of MCHI-CREDAI
The consistent maintenance of the repo rate at 6.5% for the sixth consecutive time reflects the central bank’s commitment to achieving the 4% Consumer Price Index (CPI) target. This stability in monetary policy is crucial for fostering economic predictability and sustaining investor confidence. An unchanged rate may seem static, signals a strategic approach to balance inflation control with economic growth. As a real estate developer, we acknowledge the importance of a steady interest rate environment, as it influences borrowing costs and subsequently impacts the property market. The resilience in the repo rate provides a conducive atmosphere for sustainable development.

Keval Valambhia COO CREDAI MCHI
Ensuring stability in interest rates holds profound implications for both the residential and commercial real estate domains. Keeping the Repo rates low will foster an environment of financial accessibility through consistently low borrowing costs. Stable interest rates serve as a pivotal catalyst for driving heightened interest and investment in properties across both sectors. This, in effect, generates a ripple effect of increased demand, thereby injecting vitality into the real estate industry and also to economy at large. Amidst the intricacies of economic fluctuations and market uncertainties, the imperative of prioritizing affordable housing cannot be overstated.

Anshul Jain, Managing Director, India & Southeast Asia and Head of APAC Tenant Representation, Cushman & Wakefield
The update is in line with the last policy statement from RBI where the expectation was for the benchmark repo rate to stay unchanged at 6.5% and to have the target inflation rate of 4%, down from the current average of around 5.5%. For the Indian Real estate space, we do not expect the today’s update to have any material impact on the on-going positive sentiment. However, we hope the interest rates start to drop soon as this will also revive sentiments of affordable homebuyers.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
The RBI has maintained the 6.5% repo rate, as expected. Nonetheless, considering that the macroeconomic conditions are favourable and the rate has been held at 6.5% for the past few quarters, the Indian real estate market and the overall economy would have benefited immensely from a rate reduction. This action will keep consumer housing costs and mortgage rates higher, and we hope it won’t negatively affect the feelings of prospective homeowners.

Dr. Samantak Das, Chief Economist and Head- Research & REIS, India, JLL
India’s economy, driven by accelerating growth indicators and softening inflation has provided comfortable legroom to the RBI to keep repo rate unchanged at 6.5% for the sixth consecutive time. Despite continued global uncertainties, India’s GDP growth has been strong due to robust domestic demand due to structural drivers of infrastructure and digital transformation of the economy. India’s residential markets in 2023 hit a historic peak, buoyed by positive buyer sentiment and still-healthy affordability levels. 2023 sales were in fact 25% higher than the previous highs seen in 2010. At the prevailing interest rates, we expect the residential sales market to clock a 15-18% y-o-y growth in 2024 too keeping the current momentum intact. Given India’s growth projections, we are hopeful that a future repo rate cut would give a massive fillip to affordability in 2024, which will be second only to 2021 peak affordability levels reported in JLL’s Home Purchase Affordability Index. This is likely to push India’s residential sales in value terms to over INR 3 lakh crore over the next year with the potential to double over the next five years, supported by the policy ecosystem and a pragmatic interest rate regime.

Vihang Sarnaik, Director, Vihang Group
We’re pleased with the RBI’s decision to maintain the status quo on REPO, especially given the ongoing inflation above the 4 per cent target. It aligns with market expectations, indicating a sense of stability in the current monetary policy. As a leading developer catering the middle-class housing aspirations, this will keep the housing demand intact. The decision to keep the repo rate intact will help developers like us who catering the middle-class aspiration of owning a home. It will help to continue the current momentum in real estate sales as even a 0.25 BPS increase would have impacted the home-buying sentiments in this segment.

Nikunj Sanghavi, Managing Director – Veena Developers, Treasurer – CREDAI MCHI
The decision to uphold the current repo rate is a welcome move in the face of a challenging economic environment world wide, showcasing a judicious approach to balancing diverse sectoral needs, including real estate. Recognizing the intricate dynamics in transmitting repo rate adjustments to lending rates, this decision provides a glimmer of positivity that holds the potential to invigorate buyer sentiments. Nevertheless, as an industry, we maintain vigilance, considering the cumulative impact of recent rate hikes on demand, especially in the affordable and middle-income segments. Emphasizing the broader economic interest and the housing industry’s well-being, we advocate for a future reduction in the repo rate by the RBI.

Also Read: Housing sales momentum to continue as RBI holds repo rate

The post RBI Keeps Repo Rate Unchanged appeared first on Square Feat India.

By Varun Singh

From the real estate sector’s perspective, this upward revision will impact the sentiments of home buyers, who have remained positive despite the hike in the property prices due to the consecutive rate hikes and other factors like increased stamp duty and rising construction costs.

Here are the reactions from the real estate experts:

Dr Niranjan Hiranandani -National Vice Chairman- Naredco & MD- Hiranandani Group, “Industry reckons the RBI’s focus on sustainable economic growth with Real GDP forecast at 7.2% for FY23, while continuing its monetary intervention to tame global inflation headwinds by increasing repo rate by 50bps. As the home loan borrowing is at the flexible rate, short term interest rate spike will certainly hurt the homebuyers’ sentiments, but it averages out the cost positively in the long term. Developers are conscious about the inflationary pressure building up with the spiralling economic discord and will chalk out deal sweeteners on the back of festive tailwinds.  Industry recommends the continuation of two thong approaches in the way of fiscal as well as monetary intervention to contain the consequential impact due to the global upheavals. Real estate continues to be a good bet for investment with sustainable consumption demand at play even after the interest rate cycle wanes off.”

Anuj Puri, Chairman – ANAROCK Group, “A rate hike was expected, but the expectation was for a maximum of 35 bps. The hike by 50 bps is definitely on the higher side, and home loan lending rates will now edge further into the red zone. This is the third consecutive rate hike in the last two months and finally marks the end of the all-time best low-interest rates regime – one of the major factors that drove housing sales across the country since the pandemic. This whammy comes along with the inflationary trends of primary raw materials, including cement, steel, labour, etc., that have recently led to a rise in property prices. Together, these factors – rising home loan rates and construction costs – will impact residential sales that did reasonably well in the first half of 2022. As per ANAROCK Research, approx. 1.85 lakh units were sold in H1 2022 across the top 7 cities. The repo rate now stands at 5.4%, thus reaching the pre-pandemic levels. While inflation has partially eased as compared to the surge in April, it continues to be above the RBI’s target.”

Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI “After two years of unchanged repo rate, RBI ‘s decision to hike the interest rates to tackle the inflation and ensure domestic economic recovery was a no-brainer. The sharp acceleration of rates consecutively for the third time in a short period may have a short-term effect on the sentiment of homebuyers as low interest rates have been the biggest factor in the resurgence for real estate demand in the last two years. We hope that the State Government will step-in to lighten the homebuyer’s load by reducing stamp duty ahead of the festive season.”

Kaushal Agarwal – Chairman, The Guardians Real Estate Advisory“The recent consecutive rate hikes by the RBI were aimed at re-anchoring the inflation expectation and strengthening the economy. Thus far, the rise in property prices due to the increased interest rates, metro cess and higher stamp duty had not affected real estate sales over the last few months, thereby confirming that there is genuine demand for housing. But this move by the RBI to hike the repo rate again might temporarily limit the growth momentum of the real estate sector.”

Cherag Ramakrishnan, Managing Director, CR Realty”With  the upward trajectory in interest rates firmly established by RBI, the homebuyers while feeling the pinch in the short term may rush to purchase their homes and lock in their home rates at the earliest. This has been the trend in the last quarter, and we see that trend accelerating in the coming two quarters as well. Based on the sales data of the last two quarters, even post the rate hikes, the off season sales are at an all time high. The fear of rising property prices and further interest rate hikes is only further fueling the latent demand conversion. With limited inventory close to readiness, the demand for ready or close to possession homes will see an exponential increase in the coming quarters.”

Shraddha Kedia-Agarwal, Director, Transcon Developers“RBI’s decision to hike the policy rates for the third consecutive time was anticipated on the back of high inflation and economic recovery. We had already started seeing a vertical movement in the home prices from the past couple of months which had a minimal impact on the housing demand. But, this decision will further put a dent on the homebuyer’s sentiments impacting the overall demand for a short period of time.”

Jitrendra Shah, Managing Director, Rockford Group “The decision by the RBI to hike the repo rate to pre-pandemic levels was anticipated to keep the inflationary expectations under check. This move may impact the overall growth of the industry by dampening sales momentum while property prices are already on rise. However, we believe that this will also encourage the fence-sitters to make the most of the current schemes offered by developers in the market and take the plunge.”

Bhushan Nemlekar, Director, Sumit Woods Limited
“Due to the pandemic and the geopolitical issues, the input costs were already high and now with these consecutive rate hikes, it will only dampen the spirit of the entire real estate value chain. The cost of borrowing for both developers and buyers will be impacted and this will result in undesired rate hikes across the spectrum. However, we did not see much impact on the buying spree in the last couple of months since there are genuine buyers in the market to keep the momentum going.”

Jitesh Lalwani – President, HomeSync Real Estate Advisory
“RBI’s decision to hike the key policy rates for the third time in a row will have a serious impact on the housing loan EMIs but we are still bullish about the real estate sector the way it has performed in the past few months. Yes, homebuyers are concerned about the skyrocketing property prices but  we believe that this move may push homebuyers who are still deliberating to seal the deal. However, we urge the Government to take some necessary measures to control the rise in property prices so that it will help to boost the demand in the upcoming festive season.”

Dr. Sachin Chopda, Managing Director, Pushpam Group
“RBI’s decision to hike the policy repo rate was anticipated, factoring the rise in inflation. The rate hike is likely to shrink liquidity in the economy overall, especially impacting the investor’s sentiments. There will be a short-term pause on the minds of the investors while assessing the volatility of the current market dynamics. However, they are bound to return soon in the market as the festive season commences.’’

Also Read: RBI Gives a Nod for Self-Redevelopment Loans to Cooperative Housing Societies

The post RBI Repo Rate Hike May impact Home buyer sentiments appeared first on Square Feat India.

As per the notification of RBI, the District Center Co-operative Bank and State Co-operative Banks are allowed to grant finance to Commercial Real Estate – Residential Housing within the existing aggregate housing finance limit of 5% of that total asset.

Due to this notification by RBI, Mumbai Bank as well as Maharashtra State Co-operative Bank & Other District Co-op Banks will be able to grant loans to housing societies, who are opting for Self-Redevelopment.

The individual housing loans by cooperative banks limit of 2011 has been doubled after 11 years. Considering the needs of the customers the individual housing loans for tier I cooperative banks has been enhanced from Rs.30 lakhs to Rs.60 Lakhs and for tier II of Co-operative Banks from Rs. 70 Lakhs to Rs.140 Lakhs. Because of this revision individuals can approach even District Centre Co-operative Banks & other co-operative banks to get the higher loan amount.

Similarly, RBI has allowed the District and State Cooperative banks to grant self-redevelopment funding to the housing societies. This has become possible due to the constant follow up made by Abhishek Ghosalkar, Chairman of Mumbai Suburban District Housing Federation and the Director of Mumbai Bank representing nearly 35,000 housing societies in Mumbai.  Since 2016 Mumbai Bank under the leadership of Shri. Abhishek Ghosalkar was granting funds to the housing societies for Self-Redevelopment. However, in the year 2019 when the state government appointed Maharashtra State Cooperative Bank as a nodal agency to grant the self-redevelopment funding, the RBI restrained the Mumbai Bank and Maharashtra State Cooperative Bank to lend the self-redevelopment funds to the housing societies considering the same as Commercial Real Estate funding.

Abhishek Ghosalkar says that Self Re-development is a best alternative for housing societies to start the Re-development considering the stalled projects and the default committed by a number of Developers.

Self-Redevelopment provides maximum security to the members, less litigation and provides additional benefits to the members in the form of Additional Area, Additional Corpus over and above what the Developer offers.

Abhishek Ghosalkar says the Mumbai Suburban District Federation has constituted a separate free advisory Cell to guide Housing Societies looking for Self-Redevelopment from beginning till the OC is obtained.

Due to the constant follow up made by the Mumbai Bank, Maharashtra Societies Welfare Association and Shri. Abhishek Ghosalkar, Chairman, Mumbai Suburban District Housing Federation Ltd the major relief for the funding for self-redevelopment could be achieved.

CA, Ramesh Prabhu – Chairman of Maharashtra Societies Welfare Association (MahaSewa) is of the opinion that because of the RBI New Policy the Self Re-development will get required funds from the banks which will boost Self Re-development.

Also Read: RBI’s Repo Rate Hike may impact real estate demand: Realtors

The post RBI Gives a Nod for Self-Redevelopment Loans to Cooperative Housing Societies appeared first on Square Feat India.

The RBI today increased the repo rate by 50 bps, the quantum of the rate hike was on the upper end of the market expectations. The central bank has also tweaked its policy stance to withdraw the accommodative policy, ending the easy liquidity policy.

The RBI inflation trajectory above 6.5% is a cause of concern, but the big announcement was raising the limit of loans for the State Co-operative Banks and District Central Co-operative Banks to the housing sector. The housing sector is a capital-intensive business, these measures will address the growing need for affordable housing, providing easy and higher limits with enough funding avenues for the projects. It will improve credit flow to the sector and also act as a boost for housing projects in the rural areas, thereby ensuring the recovery in all pockets of the country.

While developers expect rationalization of increase in key input cost like steel and cement, coupled with interest rate reversal in home loan from a decade low rates may help the real estate sector to remain in the stable price regime.

Also Read: RBI makes Real Estate Happy for 10th Consecutive time

The post RBI withdraws accommodative policy ends, easy liquidity policy appeared first on Square Feat India.