Experts believe the move, which follows a 100 basis point reduction earlier this year, will boost consumer confidence, provide developers with consistency, and guarantee that housing demand maintains its pace until 2026.
On October 1, the Monetary Policy Committee (MPC) of the Reserve Bank of India maintained the repo rate at 5.5 percent. This decision was largely seen as a way to balance inflation control with growth demands while boosting economic confidence over the holiday season.
Market watchers said the move, which follows a 100 basis point reduction earlier this year, will boost consumer confidence, provide developers with consistency, and guarantee that home demand maintains its pace.
“The news is anticipated to improve consumer morale and might lead to increased demand across important industries in the next weeks, especially in light of the recent GST reduction and range-bound inflation. According to Anshuman Magazine, chairman & CEO-India, South-East Asia, Middle East & Africa, CBRE, “it suggests a consistent growth forecast and strengthens market confidence, delivering long-term stability to developers and purchasers.”
The policy pause successfully fosters a housing-friendly environment: stable lending rates guarantee predictable EMIs, festive atmosphere encourages people to purchase, and GST cuts cushion affordability.
For both developers and users, the choice is a definite indication of stability. According to Magazine, the choice to maintain the repo rate at 5.5% shows a prudent approach throughout the holiday season and in the face of unstable global macroeconomic and policy situations. He anticipates a further acceleration in market momentum and an improvement in consumption.
Ankur Jalan, CEO of Golden economy Fund (GGF), a category II Alternative Investment Fund (AIF) with a concentration on real estate, said that the RBI’s decision to maintain the repo rate in conjunction with the GST reduction would boost consumption and assist protect India’s economy from tariffs.
A festive boost combined with affordability
According to Anuj Puri, chairman of Anarock Group, the RBI’s decision would result in stable loan interest rates for new borrowers and no immediate adjustments to EMIs for current borrowers.
In India’s top seven cities, residential sales in Q3 2025 fell 9% year-over-year to 97,080 units, but total sales value increased 14% to Rs 1.52 lakh crore, according to the most recent Anarock data. This suggests that demand has switched towards luxury and mid-segment houses.
However, according to CBRE-Assocham statistics, luxury property sales increased 85 percent year over year in the first half of 2025, approaching 7,000 units in key cities.
With the reduction of the 28 percent GST on cement to 18 percent, Puri predicted that building costs would drop by 3 to 5 percent, which might lower house prices for purchasers by 1 to 1.5 percent. This may save consumers between Rs 1-3 lakh on their purchases, which is especially advantageous for mid-range and cheap houses where purchasers are more sensitive to price. “Stable borrowing rates and reduced building costs combine to provide a favorable climate for home demand, particularly during the present holiday season,” he said.
According to Manju Yagnik, senior vice president of NAREDCO-Maharashtra and vice chairman of Nahar Group, the consistent approach fits very well with the need for festival housing that naturally rises. This regularity helps the real estate industry throughout the holiday season, when home-buying activity often peaks.
“After the new GST rationalization, which has already improved affordability, purchasers may act on long-awaited choices with confidence thanks to predictable EMIs.” Clarity in funding helps developers as well, allowing for timely project planning and implementation, she added.
According to Yagnik, real estate will begin 2026 on a solid growth trajectory thanks to a stable rate environment, festive atmosphere, GST relief, and solid economic fundamentals.
The purchasers who were unsure would react favorably and continue buying real estate during this holiday season, according to Amit Modi, Director of the County Group, which is situated in the National Capital Region. Additionally, it shows that the RBI believes in India’s economic narrative, which would eventually help the real sector once again.
Developers want stability over the long run
Although a rate drop would have spurred short-term demand, Ashok Kapur, chairman of Krishna Group and Krisumi Corporation, said the decision provides much-needed consistency in planning.
According to Kapur, the real estate industry is still benefiting from previous commercial bank lending rate reductions and changes. According to him, it gives developers the much-needed consistency they need to plan and execute projects on schedule while boosting their confidence in the industry’s long-term prospects.