RBI Repo Rate Cut Brings Relief to Navi Mumbai Homebuyers and Developers

Navi Mumbai: Homebuyers and developers in Navi Mumbai have welcomed the Reserve Bank of India’s (RBI) decision to cut its key lending rate—repo rate—by 50 basis points to 5.5%, as inflation eases within the central bank’s comfort zone. The move is expected to bring relief to borrowers through lower EMIs, particularly benefiting homebuyers with long-term loans.

Since February 2025, the RBI has cumulatively slashed the repo rate by 100 basis points, creating favorable conditions for homebuyers. The reduced rates make housing loans more affordable, potentially stimulating demand in both primary and peripheral markets.

For example, a home loan of ₹15–20 lakh now results in a monthly EMI reduction of approximately ₹700–1,000. This is a considerable relief for price-sensitive buyers, especially those employed in the informal sector.

According to the developers’ body MCHI, the rate cut not only boosts buyer sentiment but also improves overall market confidence. “We anticipate this move will activate fence-sitters and revive first-time buyer interest across urban and semi-urban pockets,” a spokesperson said.

Domnic Romell, President of CREDAI-MCHI and Director at Romell Group, said, “A cumulative rate cut of 50 basis points significantly eases the monthly repayment burden for aspiring homebuyers, especially in the affordable housing category.”

Nikunj Sanghvi, Treasurer of CREDAI-MCHI and Managing Director of Veena Developers, added, “Peripheral markets like Palghar, Badlapur, Panvel, and other Tier 2 and Tier 3 cities stand to benefit the most. These areas offer attractive pricing, and with borrowing becoming cheaper, we expect faster inventory movement and increased sales. Affordable housing projects in these belts—often preferred by first-time buyers and end users—will likely gain momentum as financing becomes more accessible. This could also encourage new launches and stimulate broader economic activity in these micro-markets.”

Manohar Shroff of Shivam Developers, Navi Mumbai, echoed the optimism: “The market was slowing down, and this surprise 50 basis point cut will change the market sentiment. It will provide a much-needed boost to the sale of unsold inventory across the city.”

Poonam Kumari, a prospective homebuyer from Navi Mumbai, said, “I had been waiting for a better lending climate. With the EMIs now set to be lower, I’m ready to finalise my home purchase decision.”