New Delhi: The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.5%, a move that ensures home loan EMIs remain steady.
Anuj Puri, Chairman, ANAROCK Group says, “RBI repo rate pause maintains consumer confidence, it does not directly improve housing affordability. For existing borrowers, EMIs will stay the same, while new borrowers will continue to face interest rates at current levels.”
According to the latest ANAROCK data, residential sales across the top seven Indian cities witnessed a 9% year-on-year decline in Q3 2025, falling to 97,080 units. However, the total sales value surged by 14% to ₹1.52 lakh crore, reflecting increased demand for premium and mid-segment homes.
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GST Cuts on Cement to Lower Construction Costs
The government’s recent GST cuts are expected to provide notable relief for both developers and homebuyers.
The GST rate on cement has been reduced from 28% to 18%, bringing down construction costs by an estimated 3–5%. This reduction could lower home prices by 1–1.5%, translating into savings of ₹1–3 lakh for buyers, particularly in affordable and mid-segment housing where price sensitivity is higher.
ANAROCK data highlights a decline in affordable housing’s share from 38% in 2019 to just 18% in 2024, making these tax reductions critical for reviving demand in the segment.
RBI Repo Rate Pause: Festive Season Outlook for Homebuyers
With RBI repo rate stable and construction costs likely to fall, the combination creates a favorable environment for housing demand during the festive season.
Industry experts believe this stability, paired with cost relief, could encourage more homebuyers, particularly in affordable and mid-range categories, to take advantage of current market conditions.
Discussion Paper on Licensing new Urban Cooperative Banks
Prabhat Chaturvedi, CEO, National Urban Cooperative Finance & Development Corporation (NUCFDC) said, “We welcome the RBI’s announcement to publish a discussion paper on licensing new Urban Cooperative Banks. This forward-looking initiative reflects the sector’s positive momentum and presents an opportunity to strengthen governance, drive responsible growth, and expand the cooperative banking model to underserved communities.”
