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The Reserve Bank of India raised its benchmark interest rate by 25 basis points to 5.50 per cent on Wednesday, its first increase in nearly four years. "The RBI has increased the repo rate after three years... As a result, interest rates of banks and financial institutions on housing and construction loans will increase. This will have some adverse impact on real estate," CREDAI West Bengal president Sushil Mohta said. Primarc Projects MD Siddharth Pansari said the hike may make home loans marginally more expensive, but is unlikely to have a major impact on genuine homebuyers. "In Kolkata, people are buying homes with a long-term view, and their decisions are increasingly driven by the right location, better quality and the lifestyle a home offers. There may be some caution in the short term, but the underlying demand for good homes remains strong," he said. MD of Purti Realty Mahesh Agarwal said the immediate impact could be felt through higher home loan costs, while developers may also face a marginal increase in the cost of capital. "However, we do not anticipate this to fundamentally alter the long-term trajectory of the housing market," he said, adding that demand for quality homes is increasingly supported by income growth, evolving lifestyles and infrastructure development. Emami Realty MD and CEO Nitesh Kumar said the rate hike could temporarily affect affordability, particularly for financing-dependent first-time buyers, and those in the affordable-to-mid segment, coming as it does at the beginning of the festive season. "Despite short-term borrowing-cost pressures, strong cultural and financial intent continues to support festive real estate demand. Developers are responding with flexible payment plans, stronger value propositions, and targeted offers to sustain quarterly momentum," Kumar said. Knight Frank India Chairman and MD Shishir Baijal said the 25-basis-point hike was broadly in line with expectations amid weak monsoons, the potential impact of El Nino, geopolitical conditions and inflationary pressures. "The shift to a 'calibrated tightening' stance signals that further rate action will remain data dependent. For real estate, higher borrowing costs could create some affordability pressures, particularly in interest-rate-sensitive and lower-priced segments, but we do not expect a material disruption to the sector's broader trajectory in the near future," Baijal said. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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