Real estate bodies CREDAI and NAREDCO have urged the Reserve Bank of India (RBI) to reduce the key repo rate in the upcoming monetary policy meeting to stimulate demand for residential properties, particularly in the affordable housing segment. The associations also expressed hope that banks would pass on the benefits of earlier interest rate cuts to both existing and new home loan borrowers.

The RBI, on Wednesday, kept key policy rates unchanged as it awaited clearer signals on the impact of US tariffs, along with the effects of previous rate reductions and recent tax reforms. Since February, the central bank has reduced the repo rate by a cumulative 100 basis points, bringing it down to 5.5 per cent.

Commenting on the policy decision, CREDAI National President Shekhar Patel said the RBI’s move to maintain the repo rate at 5.5 per cent has provided much-needed stability to the housing sector amid global economic uncertainty. He noted that predictable borrowing costs enable homebuyers to plan long-term purchases, while developers gain clarity to advance project financing and execution.

Patel also highlighted that the recent rationalisation of GST rates has improved consumer sentiment and boosted demand across sectors. While markets had anticipated a 25-basis-point cut in the current policy, he said the industry remains optimistic that the RBI will deliver a cumulative 50-basis-point easing during the current financial year in two phases, which would further support economic and real estate activity.