With several mega infrastructure projects—including the Navi Mumbai International Airport (NMIA) and the Panvel-Karjat railway line—nearing completion, demand for housing in Navi Mumbai has been on the rise. In a move that brings further relief to homebuyers, the Reserve Bank of India (RBI), in its latest monetary policy announcement, has cut the repo rate by 25 basis points to 6%. This is expected to prompt banks to lower home loan interest rates, benefiting both new buyers and existing borrowers.
Despite growing interest in the region, the real estate market had seen a slowdown over the past two to three months, with many developers slashing prices to attract homebuyers. Experts believe the rate cut will especially boost the affordable housing segment, where buyers often depend on loans and stretch their budgets to purchase homes.
“Now, homebuyers from the affordable segment will be more confident to step forward and make purchases,” said Manohar Shroff from the Navi Mumbai unit of MCHI.
Until now, high repo rates had pushed banks to increase interest rates on various loans, including housing loans. With the recent cut, all borrowers—except those on fixed-rate loans—can expect their EMIs to decrease soon.
“The RBI’s decision to cut the repo rate is a welcome move that will support the real estate sector, especially affordable housing,” said Dominic Romell, President of CREDAI-MCHI. “Lower interest rates will make home loans more accessible, boosting demand and giving a much-needed push to the housing market.” He also pointed out the government’s recent ₹15,000 crore allocation to the SWAMIH fund, which aims to complete stalled affordable and mid-income housing projects—offering relief to waiting homebuyers and restoring confidence in the sector.
As connectivity improves and infrastructure advances, housing supply is expected to grow along key corridors such as the old Mumbai-Pune highway. “A large stock of housing will come up in Navi Mumbai, driven by the expected demand from the commencement of NMIA and the new railway line,” noted a local real estate agent.