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.

At the heart of these proposals lies the government’s ‘Housing for All’ vision for 2030, with the real estate sector anticipating policy reforms and financial incentives to accelerate progress toward this goal.

Affordable Housing in Focus
A major focus is the affordable housing segment. Dr. Nayan Shah, Chairman and Managing Director of Mayfair Housing, has suggested raising the price cap for affordable housing projects to ₹75 lakh to better support this critical segment and reduce the financial burden on homebuyers. He also advocates for including real estate under Input Tax Credit (ITC) and phasing out stamp duty under a proposed ‘One Nation, One Tax’ initiative.

Jash Panchamia of Suraksha Smart City echoes these sentiments, emphasizing the need to revise the price cap from ₹45 lakh to ₹75 lakh for the Mumbai Metropolitan Region (MMR). He believes this adjustment, along with extended benefits under Section 80-IBA, will reflect market realities and enhance housing accessibility.

Increased Allocation to PMAY
Bhavesh Shah, Joint Managing Director of Today Group, which has projects in Navi Mumbai and Thane, supports an increase in the budget allocation to the Pradhan Mantri Awas Yojana (PMAY). “A 10-15% rise over the previous ₹79,000 crore allocation would help ensure that efforts to provide housing for all gain momentum,” he said. Shah also highlighted the need for policies promoting urban regeneration and incentives for vertical developments to transform India’s urban landscape.

Addressing Rising Costs of Homeownership
Rising costs remain a concern for both developers and homebuyers. Parthh K Mehta, CMD of Paradigm Realty, emphasized the importance of increasing the tax deduction cap on home loan interest, which would provide instant relief to homebuyers and encourage investment in residential real estate. Similarly, Chintan Sheth, CMD of Sheth Realty, called for additional tax benefits for first-time homebuyers and a more rationalized property tax structure to spur demand.

Sustainability and Green Housing Initiatives
Green housing and sustainability have also emerged as key priorities. Dr. Shah proposed leveraging a labor cess to improve construction workers’ welfare and promote green-certified buildings. Hiren Chheda, Managing Director of Ekatva Group, stressed the importance of special provisions for green-certified buildings to attract foreign investors and address environmental challenges.

Streamlining Costs and Processes
With a projected 34% increase in high-rise towers exceeding 40 floors by 2030 in Mumbai, developers like Mehta advocate for reduced input costs on materials such as steel and cement, along with a streamlined single-window clearance system to eliminate delays and encourage investments.

Improving Urban Infrastructure
Developers are also pushing for improvements in urban infrastructure. Chintan Sheth urged the government to allocate additional funds for city infrastructure to ensure the viability of affordable housing projects. Hiren Chheda suggested simplifying REIT regulations to enhance liquidity for developers while boosting retail investor participation.

The Call for Industry Status
Anmoll D Shroff, Founder and CEO of Graanth Realty, highlighted the need to grant the real estate sector industry status, unlocking access to institutional capital and low-cost financing options. Shroff also proposed reducing GST on essential construction materials and rationalizing rates for under-construction properties to optimize costs. Additionally, he advocated for tax incentives for real estate derivatives like REITs and SMREITs to increase retail investor participation.

A Balanced Budget is Key
While the sector praises the government’s efforts to improve urban housing and infrastructure, developers believe the 2025-26 Budget offers an opportunity to address longstanding concerns. Tax reforms, improved regulatory frameworks, and increased infrastructure investments could collectively drive growth and make real estate more inclusive and accessible.

The industry is optimistic that the upcoming budget will balance the aspirations of all stakeholders, fostering a more robust and sustainable ecosystem for developers, homebuyers, and investors alike.

Also Read: budget expectations for real estate

The post Developers Look to Union Budget 2025-26 for Growth-Oriented Real Estate Policies appeared first on Square Feat India.

Prashant Sharma, President, NAREDCO Maharashtra
“The real estate sector in Maharashtra looks forward to proactive governance that fosters growth and investment. Our key expectations from the new government include faster clearances for real estate projects, an improved ease of doing business environment, and policies that promote affordable housing. A collaborative approach between the government and industry stakeholders can not only streamline development processes but also ensure that the state remains a leader in infrastructure and housing innovation.”

Kuldeep Jain, Founder & CEO, Build Capital
“As Maharashtra ushers in a new government, the focus should be on driving economic growth through streamlined approvals and transparent regulations. A balanced policy framework that promotes development while ensuring sustainability is crucial. Addressing delays in environmental and regulatory clearances is essential. Implementing a timeline-driven clearance policy and a unified one-window system will reduce bottlenecks, enhance transparency, and instill confidence among developers and financial institutions. This will pave the way for innovative financing solutions, benefiting both developers and homebuyers. Infrastructure-led growth corridors must be prioritized to unlock emerging markets, boost connectivity, and attract private equity investments, positioning Maharashtra as a key economic driver. A progressive and transparent regulatory framework will ensure sustainable growth and solidify the state’s reputation as a premier investment destination. The new leadership must act decisively to secure Maharashtra’s prosperous future.”

Vikas Sutaria, Founder, Iraah Lifespaces
“Maharashtra’s real estate sector requires a forward-thinking government that recognizes the potential of luxury and second-home markets. By focusing on infrastructure connectivity, especially in emerging regions like Alibaug and Lonavala, and introducing tax incentives for investments in premium projects, the state can attract high-net-worth individuals and investors. Streamlining policies for sustainable and luxury developments will create a more robust real estate ecosystem.”

Anil Mutha, Chief Visionary & Co-Founder, Nandivardhan Group
“With the new government in Maharashtra, the real estate sector stands at the brink of transformative growth. Streamlined regulatory processes to expedite project approvals will accelerate the construction cycle, creating benefits for both developers and homebuyers. Prioritizing infrastructure development in connectivity and utilities is vital for unlocking the potential of emerging real estate markets. Enhanced infrastructure will not only attract investments but also improve living standards across the state. Additionally, fiscal incentives such as reduced stamp duty and tax benefits could play a pivotal role in revitalizing buyer sentiment. A strong, collaborative dialogue between the government and industry stakeholders is essential to address persistent challenges and realize the sector’s immense potential. We remain optimistic about bold actions that will fulfill housing aspirations, elevate living conditions, and contribute significantly to Maharashtra’s economic growth.”

Samyak Jain, Director, Siddha Group
“The real estate sector in Maharashtra anticipates a new government that prioritizes sustainable growth through faster project approvals, streamlined RERA compliances, and enhanced connectivity to boost infrastructure development. Additionally, incentivizing affordable housing, reducing development costs, and ensuring a transparent regulatory environment will position Maharashtra as a leader in creating holistic urban spaces and driving future growth.”

Shraddha Kedia-Agarwal, Director, Transcon Developers
“As industry stakeholders, we anticipate a government that champions reform and efficiency. We urge the new leadership to focus on single-window clearance systems, rationalization of stamp duty, and innovative financial support for developers. Strengthening infrastructure around growth corridors and supporting sustainable urban development will also catalyze sectoral growth.”

Vedanshu Kedia, Director, Prescon Group
“The new government must prioritize urban regeneration, particularly slum rehabilitation and redevelopment projects along with city/town beautification projects, which are crucial for a city like Mumbai. Additionally, fostering an investment-friendly ecosystem through regulatory consistency and infrastructure upgrades will drive the growth of the sector and enhance Maharashtra’s real estate appeal.”

Rohan Khatau, Director, CCI Projects
“Our primary expectation from the new government is to create a policy framework that simplifies regulatory processes and fosters confidence among developers and homebuyers alike. Reducing the tax burden, including stamp duty and GST, and ensuring smoother project execution can unlock the potential of the real estate sector, making Maharashtra a global investment hub.”

Govind Krishnan Muthukumar, Managing Director & Co-Founder, Tridhaatu Realty
“The new government must prioritize policy frameworks that streamline key initiatives, particularly in urban centers like Mumbai. Addressing bottlenecks in approvals and introducing incentives for redevelopment will not only rejuvenate aging infrastructure but also create much-needed housing. Additionally, the government’s focus should be on fostering public-private partnerships that ensure timely execution of urban regeneration projects while maintaining sustainability at the core.”

Himanshu Jain, VP – Sales, Marketing & CRM, Satellite Developers Private Limited (SDPL)
“The real estate sector looks forward to the new government focusing on holistic urban planning and infrastructure upgradation. Policies that address challenges like approval delays, high financing costs, and project execution bottlenecks can transform the state into a real estate powerhouse. The introduction of single-window clearances, along with reforms in taxation such as reduced GST and stamp duty, will greatly enhance the ease of doing business.”

Deepak Nair, COO & Co-Founder, The Mentors Real Estate Advisory Pvt. Ltd.
“We hope the new government will adopt a consultative and industry-inclusive approach to policy making. Simplifying regulatory compliance, promoting ease of doing business, and reducing approval timelines can significantly accelerate real estate development. Moreover, introducing measures to encourage foreign investments and infrastructure development around key urban hubs will elevate Maharashtra’s real estate sector to global standards.”

Also Read: Residential Market Sees Growth in Sales and Value, Led by Luxury Segment in Q3 2024

The post Maharashtra’s Property Market Eyes Major Reforms With Formation of the New Government appeared first on Square Feat India.

Dharavi Redevelopment: A New Era for Asia’s Largest Slum

Scope of the Project: Dharavi, known as one of Asia’s largest informal settlements, is undergoing a monumental redevelopment. The initiative aims to replace the current informal housing with modern, high-rise residential buildings, commercial spaces, and enhanced infrastructure.

Objectives and Vision: The redevelopment seeks to elevate living conditions by improving sanitation, housing quality, and overall amenities. It also aims to create a more organized commercial environment, contributing to the area’s economic upliftment. Residents will be temporarily relocated to facilitate this extensive redevelopment.

Progress and Key Players: The Adani Group has been awarded the contract for the redevelopment of Dharavi. It is expected from Adani that they will transform the area into a modern, integrated urban environment.

Challenges Faced: The project is grappling with substantial investment requirements, logistical complexities related to relocating thousands of residents, and the intricate task of upgrading infrastructure while preserving the community’s social structure.

Also Read: Dharavi Redevelopment Construction Set to Begin Within Six Months

Kamathipura Redevelopment: Revitalizing a Historic Area

Scope of the Project: Kamathipura, known as one of Mumbai’s oldest and most notorious red-light districts, is undergoing a significant redevelopment effort. This project focuses on transforming the area into a mixed-use development featuring modern residential buildings, commercial spaces, and community facilities.

Objectives and Vision: The redevelopment aims to improve living conditions and safety for the area’s current residents while providing new housing and amenities. The project also seeks to revitalize the area’s economic potential and integrate it more seamlessly into the broader urban fabric of Mumbai.

Upcoming Plans: The Maharashtra Housing and Area Development Authority (MHADA) is planning to float a tender soon for the redevelopment of Kamathipura. This move is expected to attract developers and investment, setting the stage for a major transformation of the area.

Challenges Faced: Redeveloping Kamathipura presents challenges including addressing the socio-economic issues tied to its history, managing the relocation of existing residents, and ensuring that the new developments foster community well-being and economic opportunity without displacing vulnerable populations.

Also Read: Kamathipura Redevelopment Again On The Block.

BDD Chawl Redevelopment: Preserving Heritage While Modernizing

Scope of the Project: The redevelopment of BDD Chawls (Bombay Development Directorate Chawls), historic housing complexes built in the 1920s and 1930s, is now underway. This project aims to replace the aging structures with new, modern residential buildings while preserving the historical essence of the area.

Objectives and Vision: The redevelopment seeks to improve living conditions for the current residents by providing modern amenities and better infrastructure. The project also aims to balance the need for new housing with the preservation of the architectural and historical significance of the BDD Chawls.

Key Player: MHADA is spearheading the redevelopment of the BDD Chawls. The authority’s involvement ensures that the project aligns with both contemporary urban standards and the preservation of the historical character of the chawls.

Challenges Faced: The redevelopment faces challenges such as balancing modernization with heritage preservation. Ensuring that the new development respects the historical character while meeting current urban standards is a complex task.

Also Read: MHADA to Provide 11 Months’ Rent in One Installment to Eligible Tenants in BDD Chawl Redevelopment Project

Broader Implications for Mumbai’s Urban Landscape

Economic Growth and Investment Opportunities: The influx of redevelopment projects is stimulating economic growth by drawing substantial investments from real estate developers and financial institutions. This surge is creating job opportunities and potentially setting new real estate trends in Mumbai and other major Indian cities.

Enhancements in Urban Infrastructure: Redevelopment efforts are focused on upgrading essential urban infrastructure, including roads, sewage systems, and public transportation facilities. These improvements are expected to enhance the overall quality of life and connectivity within the city.

Social and Cultural Impact: While redevelopment promises improved living conditions, it also raises concerns about community displacement. Addressing these social issues through adequate compensation and resettlement options is crucial. Additionally, the transformation of historic and culturally significant areas may alter the social fabric and cultural dynamics, highlighting the need to balance modernization with heritage preservation.

Conclusion: Mumbai’s redevelopment projects represent a significant step towards modernizing the city and meeting the needs of its expanding population. However, the success of these initiatives will hinge on effective planning, resource management, and the careful consideration of social and environmental impacts associated with such large-scale urban transformations.

The post Will These Three Major Redevelopment Projects Change Mumbai’s Fortune? appeared first on Square Feat India.