Mumbai’s real estate sector has welcomed the Reserve Bank of India’s decision to maintain the repo rate at 5.5%, with developers in the Mumbai Metropolitan Region (MMR) calling it a balanced and forward-looking stance that supports economic stability and homeownership aspirations.
Domnic Romell, President of CREDAI-MCHI, stated that the RBI’s decision signals a prudent and stabilising policy. “In the context of MMR, where housing affordability is a critical concern, the earlier rate cuts this year have already translated into improved home loan affordability,” he noted.
Romell added that the trend is especially visible in growth corridors like Kalyan-Dombivli, Vasai-Virar, Panvel, and Navi Mumbai, where infrastructure upgrades are driving new homeownership opportunities. “The continuation of this policy stance will further strengthen buyer confidence and facilitate inclusive housing development across the region,” he said.
Developers Hopeful for Future Rate Cuts
Echoing similar sentiments, Dhaval Ajmera, Secretary of CREDAI-MCHI, pointed out that the softening of retail inflation to a 12-month low of 2.1% has created room for future rate cuts. This, he said, could particularly benefit the affordable and mid-income housing segments, which make up the majority of demand in MMR.
“Lower interest rates reduce EMI burdens, helping first-time homebuyers and middle-income families take firm steps toward homeownership,” Ajmera explained. “For developers, it improves financial feasibility under tight cost structures. We hope the RBI continues its calibrated, growth-friendly stance.”
Credit Transmission Key to Ground-Level Impact
While the current policy offers stability and continuity, Nikunj Sanghavi, Treasurer of CREDAI-MCHI, cautioned that the real impact will depend on how quickly banks pass on the benefits to end-users.
“Affordable and timely access to credit is crucial—not just for homebuyers, but also for developers working on mass housing,” Sanghavi said. He added that a sustained low-interest environment, combined with policy consistency and infrastructure development, could greatly accelerate housing penetration and support equitable urbanisation across Maharashtra.
