Bhubaneswar: Reserve Bank of India’s decision to raise the repo rate by 25 basis points to 5.50% and shift its monetary stance to calibrated tightening is expected to make home loans marginally costlier, prompting some homebuyers in Odisha to reassess their budgets during the upcoming festive season.However, industry stakeholders believe strong end-user demand and the state’s growing urbanisation story will help the residential market remain resilient. For prospective homebuyers in Bhubaneswar, Cuttack, Puri and emerging urban centres, the immediate impact will be seen in slightly higher EMIs on floating-rate home loans.According to industry experts, a 25-basis-point increase could translate into a modest rise in monthly repayments. Anurag Mathur, chief executive officer of a real estate firm, said RBI’s move was largely in line with market expectations amid heightened global uncertainty, crude oil price pressures and inflation concerns.“While higher borrowing costs may pose some near-term challenges, India’s resilient domestic demand, strong economic fundamentals and sustained investment activity should continue to support business confidence. Higher financing costs could weigh on residential demand in the near future,” he said.The Odisha real estate market, which has witnessed demand from salaried professionals, govt employees and NRIs investing in residential properties, is expected to see limited disruption rather than a sharp slowdown. Abhay Mishra, president of a realty firm, said home purchase decisions are ultimately driven by need rather than temporary interest rates.Developers are also expected to work closely with lending institutions to ensure financing options remain attractive for buyers despite higher rates. Yashank Wason, managing director of a real estate company, said the impact on borrowers would be manageable. He noted that on a Rs 50-lakh home loan with a 20-year tenure, there will be a modest rise in EMI.Industry players believe premium and luxury housing segments in Odisha are likely to remain relatively insulated from the rate hike. These categories increasingly attract buyers focused on lifestyle, location and long-term asset value rather than interest-rate fluctuations.Amit Prakash Singh, a real estate expert, said RBI’s move should be seen in the context of wider geopolitical risks and inflation. “Housing demand remains fundamentally strong, and a stable macro environment will ultimately be more important for the sector than a modest, near-term movement in borrowing costs,” he said.With the Navratri-Diwali festive period typically witnessing a surge in bookings, buyers said they may delay purchase decisions or resize their budgets. “Costs of apartments are already rising and at such point, the increase in the repo rate which will impact the home loan is driving me to rethink my decision on buying a home,” said Nita Jena, a prospective buyer.