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As the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) gears up for its October meeting, all eyes in the real estate sector are on one key
question: Will the central bank announce another repo rate cut? With the rate currently at 5.5%, the industry believes that even a small reduction could significantly boost buyer sentiment and trigger a strong revival in the housing market during the crucial festive season. The real estate sector has been one of the biggest beneficiaries of the RBI’s accommodative stance this year, with the central bank already reducing rates by 100 basis points since February. A further cut, developers say, could unlock pent-up demand, enhance affordability, and accelerate momentum across the market. RBI MPC Meeting Begins Today: Will The Central Bank Maintain Another Status Quo?
Festive Season Tailwinds Could Supercharge Demand
Industry experts believe that the timing of a possible rate cut could not be better, as the festive season traditionally marks the most active period for property investments in India.
Deepak Kapoor, Director, Gulshan Group, said, “With the repo rate currently at 5.5%, the RBI’s stance in recent months has clearly signalled support for the real estate sector. While a further cut in October’s repo rate announcement could provide an added boost, even maintaining the current rate offers stability that buyers and investors value. The festive season holds great significance for families looking to invest in Noida-Greater Noida. Besides, the GST cut has added an extra nudge for buyers this festive season, especially in the luxury and premium segments. A steady or slightly reduced rate could reignite buyer interest, making this the perfect time for the market to regain momentum amid global uncertainties.”
Echoing similar optimism, Vikas Dua, Founder & Director, Chintamanis Group, said, "A repo rate cut at this juncture would be a decisive catalyst for the real estate sector, especially as we step into the festive season — traditionally the most auspicious and active period for property investments in India. Lower borrowing costs not only enhance affordability for homebuyers but also elevate market sentiment at large. This could unlock significant pent-up demand, particularly from first-time buyers, while also reinvigorating investor confidence in long-term prospects. For developers, it creates the perfect environment to accelerate launches and sales momentum. Beyond the sector, such a move would deliver a multiplier effect — stimulating consumption, driving allied industries, and contributing meaningfully to overall economic growth. A timely rate cut, therefore, has the potential to transform the festive quarter into a landmark growth phase for Indian real estate.”
Even a Pause Could Support Growth
Some industry voices believe that even if the RBI decides to hold rates steady in October, the current policy stance remains supportive of growth.
Dr. Gautam Kanodia, Founder, KREEVA and Kanodia Group, said, "The RBI’s decision to halt repo rate at 5.5% in August reflected a commendable balance of foresight and stability, something that has directly benefited the real estate sector. Since February this year, the RBI has already cut rates by 100 basis points. While a potential cut in the upcoming announcement could further accelerate sales, maintaining the rate still keeps borrowing costs manageable and buyer sentiment positive. Real estate continues to be a reliable investment avenue, particularly during the festive season, when market activity traditionally peaks. A steady or slightly reduced rate now could serve as a timely boost for both sales and broader economic confidence."
Ajay Tyagi, Chief Sales Officer, Better Choice Realtors, added, "As the October MPC decision approaches, the housing ecosystem in NCR is closely watching for any signals. A rate cut, alongside the recent GST reduction, would further enhance affordability, helping families translate festive optimism into action. Even if the rate is maintained at 5.5%, the combined effect of stable EMIs and lower GST already supports buyer confidence. With festive buying in full swing, this period naturally encourages home purchases, benefiting both end-users and developers while providing much-needed momentum to the market."
Outlook: All Eyes on RBI’s October Decision
Whether the RBI opts for another cut or maintains the current rate, the consensus is clear: the festive quarter is poised for a strong real estate performance. A rate cut would likely act as a powerful catalyst, boosting affordability, accelerating demand, and strengthening overall market sentiment. Even without a reduction, a steady rate environment, combined with GST relief and seasonal buying trends, could ensure that the sector enters 2025 on a strong footing.
For both buyers and developers, October’s MPC decision could set the tone for the next phase of growth in India’s real estate market.
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