The Reserve Bank of India’s Monetary Policy Committee kept the repo rate steady at 5.5 percent on October 1. Experts view this step as a way to support growth, control inflation, and build trust in the economy as festivals approach.
This choice follows 100 basis points of rate cuts earlier this year. It should boost buyer moods, offer clear plans for builders, and keep home sales strong, observers note.
“Recent GST reductions and stable prices add to this. The news should raise buyer spirits and spark more demand in main sectors soon. For housing, it points to reliable growth and strong market trust. Builders and buyers gain long-term clarity,” said Anshuman Magazine, chair and CEO for India, Southeast Asia, Middle East, and Africa at CBRE.
The policy hold builds a helpful setting for homes. GST cuts ease price pressures. Holiday cheer pushes hesitant buyers to act. Fixed rates mean steady loan payments.
The move signals calm to buyers and builders. Keeping the repo rate at 5.5 percent shows care in holiday times and amid global economic shifts, Magazine added. He sees spending rise and market speed pick up.
The RBI’s rate hold plus GST cuts will drive spending and protect India’s growth from trade duties, said Ankur Jalan, CEO of Golden Growth Fund, a real estate-focused investment fund.
RBI’s rate pause means current borrowers face no quick payment hikes. New ones get steady loan costs, said Anuj Puri, chair of Anarock Group.
Anarock’s recent data shows Q3 2025 home sales in top seven cities fell 9 percent from last year to 97,080 units. But total value rose 14 percent to Rs 1.52 lakh crore. Demand moved to premium and mid-range homes.
Luxury home sales surged 85 percent year-over-year in early 2025, hitting near 7,000 units in big cities, per CBRE-Assocham figures.
Cement GST now sits at 18 percent, down from 28 percent. Build costs may drop 3-5 percent, cutting home prices 1-1.5 percent for buyers, Puri noted. This saves Rs 1-3 lakh per buy, aiding budget and mid homes where costs matter most. “Stable rates and lower build costs set up strong home demand, right in festival time,” he said.
Manju Yagnik, vice chair of Nahar Group and senior vice president of NAREDCO-Maharashtra, said the fixed rate fits the usual holiday home-buy rush. For real estate, this steadiness aids peak season activity.
“Clear payments build buyer trust to make delayed choices. Recent GST changes already help costs. Builders get funding clarity for project timing and work,” she said.
Stable rates mix with holiday moods to fuel home buys.