The Reserve Bank of India (RBI) decided to keep the key repo rate unchanged at 6.5% for the 11th consecutive time during its monetary policy review on Friday. This decision means that new homebuyers hoping for a rate cut will need to wait longer, as a reduction in the repo rate would have made home loans more affordable.
For existing home loan borrowers, there will be no change in their equated monthly installments (EMIs).
The developers’ association CREDAI-MCHI welcomed the RBI’s decision, highlighting its importance for economic stability, particularly in the Mumbai Metropolitan Region (MMR).
Domnic Romell, President of CREDAI-MCHI, commented: “CREDAI-MCHI welcomes the Reserve Bank of India's decision to maintain the repo rate at 6.5%. This reflects a commitment to economic stability, which is vital for the real estate sector, especially in the Mumbai Metropolitan Region (MMR). Consistency in borrowing costs reassures homebuyers and developers, enabling sustained affordability in a market where financial predictability is key.”
Romell also noted that the stability helps developers manage operational costs amidst ongoing inflationary pressures, ensuring housing remains accessible. “With the new government in Maharashtra under the leadership of Chief Minister Devendra Fadnavis, we look forward to collaborative measures to strengthen housing policies and infrastructure development, aligning with the aspirations of Maharashtra’s citizens,” he added.
Despite the steady rate, prospective homebuyers will see no immediate relief in home loan interest rates, which are likely to remain unchanged for now.
Looking ahead, the Builders Association of Navi Mumbai (BANM) is planning a property exhibition in January next year. The event is expected to attract a large number of buyers seeking homes that fit their budgets. However, new buyers may still need to wait a bit longer for favorable rates.
Meanwhile, Manohar Shroff, Senior Vice President of MCHI-CREDAI Navi Mumbai, emphasized that the upcoming Navi Mumbai International Airport (NMIA), expected to commence operations next year, will drive significant opportunities for the region.“This decision by the RBI is unlikely to have much impact,” Shroff said. “We anticipate the new government will take positive steps for the housing sector, ensuring homebuyers find affordable options that meet their needs.”