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Realty Sector Remains Optimistic on Housing Demand Despite RBI Repo Rate Hike
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News18•09-10-2026, 16:00
Realty Sector Remains Optimistic on Housing Demand Despite RBI Repo Rate Hike
- •The Reserve Bank of India implemented a 25-basis-point repo rate hike, prompting a measured response from the Indian real estate sector.
- •Industry leaders remain confident that sustained end-user demand, strong economic fundamentals, and the ongoing festive season will support housing activity.
- •While borrowing costs and affordability may face minor adjustments, premium and luxury segments are expected to remain largely resilient against marginal rate changes.
- •Developers emphasize that transparency in pricing, project execution credibility, and infrastructure development are crucial to maintaining long-term buyer confidence.
Key Questions Answered
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% in a calibrated response to evolving inflationary and global economic conditions.
India's real estate sector remains cautiously optimistic, expecting sustained housing activity and resilient end-user demand despite potential headwinds from borrowing costs, particularly as the festive season gets underway.
Industry experts note that while demand for premium and luxury homes remains resilient, the affordable and mid-income segments could face greater pressure and scrutiny regarding affordability and increased EMIs.
