The Confederation of Real Estate Developers’ Associations of India (CREDAI) has welcomed the Reserve Bank of India’s decision to maintain the policy repo rate at 5.50%, calling it a move that provides the housing sector with much-needed stability amid global economic uncertainty.
Stable rates are critical for homebuyers, who benefit from predictable borrowing costs and gain confidence in long-term planning. At the same time, developers are assured of predictability in financing and investments.
The recent rationalisation of GST has also boosted sentiment and demand across sectors, reinforcing the overall growth cycle. With gold and equity markets continuing to remain volatile, housing stands out as a safer and more dependable long-term investment for Indian families.
Although CREDAI had anticipated a 25-basis-point reduction in this meeting, the sector remains hopeful that the RBI will implement a calibrated 50-basis-point cut during this financial year, in two tranches, depending on economic conditions.
CREDAI emphasises that it is now crucial for banks and housing finance companies to swiftly pass on the benefits of the current policy stance to both new and existing borrowers. Timely transmission will ensure that housing demand remains strong, especially during the ongoing festive season.
Key Takeaways:
- Repo rate unchanged at 5.50%, ensuring stability for the housing sector.
- GST cuts on inputs such as cement and construction materials will reduce costs and improve affordability.
- CREDAI expects a 50 bps rate easing in FY26, in two tranches.
- Calls for faster pass-through by banks to sustain festive demand momentum.
“India’s housing demand remains structurally strong. If rate stability is effectively transmitted and calibrated easing follows later in the year, the real estate sector can deliver a powerful multiplier effect across jobs, materials, consumption, and urban infrastructure,” CREDAI stated.
Disclaimer:
This article is based on information available from CREDAI and the Reserve Bank of India as of the date of publication. It is intended for informational purposes only and does not constitute financial, investment, or professional advice. Readers should consult with qualified professionals before making any financial or investment decisions. Deshwale does not suggest, endorse, or promote any investment-related products or actions.
