Stable home loan rates to support housing demand momentum, say CREDAI and NAREDCO

The Reserve Bank of India’s decision to keep the repo rate unchanged has brought a sense of stability to India’s real estate market, with industry bodies CREDAI and NAREDCO expressing confidence that the move will help sustain housing demand in the coming months.

According to developers, a stable interest rate environment offers much-needed clarity for both homebuyers and builders. With home loan rates expected to remain steady, prospective buyers are likely to continue their purchase decisions, especially in the mid-income and premium housing segments where end-user demand has remained strong.

CREDAI President Shekhar Patel said the RBI’s wait-and-watch approach is a prudent response to ongoing global geopolitical tensions and their impact on inflation, supply chains and capital flows. He noted that despite external uncertainties, the domestic economy continues to show resilience, which is expected to support the real estate sector.

NAREDCO Chairman Niranjan Hiranandani also welcomed the central bank’s decision, stating that relatively stable home loan interest rates and unchanged ready reckoner values are helping maintain confidence among both developers and buyers.

Industry experts believe that while rising raw material costs and global supply chain disruptions, especially due to tensions in West Asia, may create short-term pressure on construction costs, the long-term outlook for the sector remains positive.

The stability in borrowing costs is particularly significant for the housing market, where affordability and financing costs play a major role in buyer sentiment. Developers expect that continued end-user demand, coupled with a stable monetary policy, will help maintain healthy sales momentum across key urban markets, including Chennai, Bengaluru, Hyderabad and Mumbai.

With India’s housing sector continuing to witness strong demand from genuine homebuyers, the RBI’s decision is seen as a supportive factor that could aid sustained growth, improve project launches and strengthen overall market confidence through the financial year.