RBI Repo Rate Hike to 5.50% May Impact Home Loan Affordability, Says Raahul Maroo

Mr. Raahul Maroo Founder and Managing Director, Tatvm Builders & Developers Pvt Ltd

“The RBI’s decision to raise the repo rate by 25 basis points to 5.50% signals a more cautious interest-rate environment, with the immediate impact on real estate likely to be felt through home-loan affordability. The increase could marginally raise EMIs or extend loan tenures, making some first-time and price-sensitive buyers more cautious in the near term.

However, we do not expect a moderate 25-basis-point hike to fundamentally derail housing demand. The festive season should provide some support to buyer sentiment, while end-users and buyers with stable incomes and strong purchase intent are likely to continue with their plans. We may see greater price sensitivity, increased comparison-shopping and a stronger preference for projects offering compelling value.

For developers, the rate hike reinforces the need for disciplined capital management and efficient financing. Overall, the move may moderate the pace of transactions in the short term, but the underlying demand for quality housing remains resilient.”