Real Estate India

Repo Rate Hike: Will Festive Housing Sales in Maharashtra Lose Steam?

By GeoSquare News Desk · Published 2026-10-08

The Reserve Bank of India's decision to raise the repo rate has sent a ripple through Maharashtra's real estate market. Industry bodies CREDAI and NAREDCO have cautioned that the move could slow the momentum of festive housing sales, especially in key residential hubs such as Mumbai, Thane, Pune and Navi Mumbai.

Home loan EMIs set to rise

With the repo rate higher, banks are expected to pass on the burden to borrowers. This means home loan EMIs will go up, reducing the purchasing power of many first-time and mid-income buyers. For a property in the Rs 50 lakh to Rs 1 crore bracket, even a marginal rate hike can add thousands to the annual outgo.

What developers say

CREDAI and NAREDCO have said that while the long-term growth story remains intact, the timing of the hike is not ideal. The festive season traditionally brings a surge in residential enquiries and bookings. A sudden increase in borrowing costs may prompt fence-sitters to defer their purchase decisions.

Outlook for Maharashtra's property market

Despite the near-term impact, demand for ready and near-completed homes remains strong. Developers in Maharashtra are likely to respond with flexible payment plans, subvention schemes and targeted offers to keep sales momentum alive. The coming quarter will be crucial to see if the festive spirit can offset the rate pressure.