The Reserve Bank of India’s 25-basis-point hike in the repo rate to 5.50 per cent could take some heat off the NCR housing market just as the festive home-buying season gets underway.The rate increase, the first since February 2023, comes as property prices remain elevated and buyers contend with higher borrowing costs. The RBI has also shifted to a calibrated tightening stance.Floating-rate home loan borrowers are likely to feel the impact first. On a Rs 50-lakh loan for 20 years, the monthly EMI could increase by around Rs 780, depending on the lender.However, developers and industry bodies expect housing demand to remain broadly resilient. Anarock Research data show average residential prices across the top seven cities rose 7 per cent year-on-year, while sales in Q3 2026 increased 3 per cent to about 1,00,220 units.CREDAI president Shekhar Patel said the higher borrowing costs “could have some impact on sales during this period, although the underlying demand for housing remains strong”.NAREDCO president Parveen Jain said the impact was likely to “remain limited, supported by strong buyer sentiment, festive demand and the long-term need for homeownership”.Several Gurugram developers, however, expect some short-term caution among buyers. Signature Global’s Pradeep Aggarwal said a stable repo rate “would have better sustained the current demand momentum”, while costlier loans “may temporarily moderate buyer sentiment, particularly in the mid-income segments”.Omaxe’s Mohit Goel expects “some moderation in buyer sentiment”, while Suraksha Infra’s Jash Panchamia said “some buyers may defer decisions”. Manglam Group’s Amrita Gupta expects buyers to “take a little more time”, while JK Urbanscapes’ Abhishek Singhania expects “greater selectivity” rather than “a broad-based slowdown”.The premium and luxury segments are expected to remain relatively insulated. Whiteland Corporation’s Sudeep Bhatt said the hike “will not dampen the momentum in residential demand, especially in the premium and high-end segments”.M3M India’s Pratik Tibrewala said premium housing demand “continues to be strong and is driven by wealth creation”.Developers also point to rising incomes, infrastructure growth and the long-term aspiration for homeownership as key demand drivers. BPTP CEO Manik Malik said these factors “continue to drive long-term demand”, while Jindal Realty’s Abhay Mishra said buyers “who need a home will still buy one”.