CNN Central News & Network–ITDC India Epress/ITDC News Bhopal : In a move widely anticipated by market watchers, the Reserve Bank of India has chosen to maintain the repo rate at 5.5%, following a cumulative 100 bps reduction over the past three Monetary Policy Committee (MPC) meetings. For the real estate sector, this pause reinforces a climate of stability, keeping home loan EMIs unchanged and encouraging end-user confidence.
With the festive season approaching and earlier rate cuts still transmitting into the system, developers look forward to seizing the opportunity to drive sales through flexible payment plans and festive incentives. A further cut in the coming quarters, if macroeconomic conditions permit, could act as an additional trigger for housing demand.
Mr Manoj Gaur, CMD, Gaurs Group, says, “This status quo reflects a prudent and laudable step by the RBI, especially in light of current international dynamics, including the impact of the Trump Tariff. With inflation significantly below the RBI’s target, the decision will definitely boost the economy and impart positive sentiment to the real estate sector, particularly at the onset of the festive season, a critical period for housing demand. We believe this consistency in policy will help strengthen buyer confidence and stimulate activity across the real estate landscape. It also enables developers to plan ahead with greater clarity, especially for integrated and long-term projects.”
Deepak Kapoor, Director, Gulshan Group, says, “The two successive rate cuts resulting in a total reduction of 100 bps over the last six months, the RBI’s stance to keep the repo rate steady at 5.5% is as per the realty sector’s expectations. The move aligns with the central bank’s cautious stance against the backdrop of global economic volatility. It is also noteworthy that the previous rate cuts significantly bolstered housing demand, with Tier-I cities recording residential sales worth Rs. 3.6 lakh crore in just the first half of 2025. Even though a slight reduction could have further fueled this growth, particularly benefiting affordable and mid-segment homebuyers. We look forward to a possible rate cut in the festive season as this would provide a timely push to housing demand, especially for first-time buyers and budget-conscious investors.”
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