CREDAI and NAREDCO urged RBI to cut the repo rate in the next monetary policy to boost residential property demand, especially affordable housing.
They emphasized that banks should pass on previous rate cut benefits to both new and existing home loan borrowers.
RBI kept key interest rates unchanged at 5.5% on Wednesday, after cumulative cuts of 100 basis points since February.
CREDAI highlighted that predictable borrowing costs and GST rationalization support long-term planning and consumer sentiment.
NAREDCO noted that lower rates would strengthen homebuyer confidence, increase demand, and benefit industries linked to real estate such as cement, steel, and interiors.
Housing sales in the top seven cities have been lower in the first nine months of 2025 due to high base effect and rising property prices.
CREDAI, NAREDCO Urge RBI to Cut Repo Rate in Next Meet to Enhance Housing Demand
They also hoped that banks would pass on the benefits of previous rate cuts to existing and new home loan borrowers
Realtors' body CREDAI and NAREDCO on Wednesday urged the RBI to reduce the key repo rate in the next monetary policy to boost demand for residential properties, especially of affordable homes.
They also hoped that banks would pass on the benefits of previous rate cuts to existing and new home loan borrowers.
On Wednesday, the Reserve Bank of India (RBI) kept key interest rates unchanged as it waited for greater clarity on the impact of US tariffs as well as playout of earlier rate cuts and recent tax reductions. Since February, the repo rate has been cut by 100 basis points to 5.5 per cent.
Commenting on the RBI policy, CREDAI National President Shekhar Patel, said, "The RBI’s decision to hold the repo rate at 5.5 per cent gives the housing sector the steadiness it needs amid global uncertainty. Predictable borrowing costs allow buyers to plan long-term and give developers the clarity to progress financing and projects." He noted that the recent GST rates rationalisation has lifted consumer sentiment and increased demand across sectors.
"While markets had anticipated a 25-basis point cut today, we remain hopeful the RBI will deliver a cumulative 50-basis point easing this fiscal in two tranches, which would further support activity," Patel said.
It is essential that banks pass these benefits to both new and existing borrowers so policy continuity and tax reform translate into sustained demand through the festive season, the CREDAI President said.
During the first nine months of the 2025 calendar year, housing sales have been lower across the top seven cities compared to the year-ago period, due to the higher base effect and also a sharp rise in prices of residential properties in the primary (first sale) housing markets of these cities.
G Hari Babu, National President of NAREDCO, said, "The decision to keep the repo rate at 5.5% alongside the projected real GDP growth of 6.8 per cent is welcome. However, just as the government has boosted various sectors by cutting GST, a reduction in the repo rate is needed to energise the real estate sector." He urged the RBI to consider bringing the repo rate below 5.5% in the next MPC meeting.
"Lower interest rates will strengthen homebuyers’ confidence, increase housing demand, and particularly benefit the affordable housing segment. Supporting industries linked to real estate, such as cement, steel, electricals, piping, and interiors, will also see growth," said Hari Babu.
CREDAI and NAREDCO are the two major industry bodies of real estate developers with a combined membership of more than 15,000.