The Reserve Bank of India (RBI) has kept the benchmark repo rate unchanged at 5.25%, maintaining its neutral policy stance as the Monetary Policy Committee (MPC) opted for a wait-and-watch approach amid global uncertainties and inflation risks.
Announcing the outcome of the three-day MPC meeting on Wednesday, RBI Governor Sanjay Malhotra said the committee unanimously decided to leave the policy repo rate unchanged after assessing domestic and global macroeconomic conditions.
The central bank revised its FY27 real GDP growth forecast upward to 6.7%, compared with its earlier projection of 6.6%. Quarterly growth is projected at 7.0% in Q1, 6.4% in Q2, 6.5% in Q3, and 6.8% in Q4, with risks remaining evenly balanced.
The RBI also revised its consumer price inflation (CPI) forecast for FY27 down to 5.0% from the earlier estimate of 5.1%. Inflation is expected at 5.3% in Q1, 4.7% in Q2, 5.9% in Q3, and 5.5% in Q4, with food and fuel prices likely to drive inflation higher in the near term before moderating later in the financial year.
Explaining the policy decision, Malhotra said economic growth remains resilient but faces uncertainties arising from the southwest monsoon, El Niño conditions, geopolitical tensions and global trade developments. He noted that the MPC would seek greater clarity on the inflation trajectory before considering any policy action.
The Governor said domestic economic activity has remained resilient despite global uncertainty, supported by strong domestic demand, healthy manufacturing performance and a rebound in merchandise exports. He added that high-frequency indicators suggest the economy performed better than expected during the first quarter of FY27.
The central bank also expressed confidence in the country's external sector. India's foreign exchange reserves remain comfortable, providing import cover of more than 10 months and covering nearly 91% of external debt. The RBI expects the balance of payments to remain in healthy surplus, supported by capital inflows.
The RBI's decision to keep the repo rate unchanged at 5.25% is expected to provide stability to India's real estate sector by maintaining current borrowing costs for homebuyers and developers. With no immediate increase in loan EMIs, housing affordability is likely to remain supportive, particularly in the mid-income and premium segments. The upward revision of the FY27 GDP growth forecast to 6.7% also reflects confidence in economic activity, which could strengthen residential and commercial property demand. However, developers and buyers will continue to monitor inflation and future monetary policy decisions, as sustained price pressures could influence financing costs in the coming months.
The policy reflects the RBI's effort to balance inflation management with supporting economic growth, while remaining cautious amid global economic uncertainty and evolving domestic inflation trends.
Real Estate Expert Opinions
Abhay Mishra, CEO & President, Jindal Realty
"The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution. Going ahead, policy support and improved liquidity will be key to unlocking the sector’s full potential and ensuring steady, inclusive growth across markets."
Rajat Bokolia, CEO, Newstone
“The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector. It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets.”
Yashank Wason, Managing Director, Royal Green Realty
"RBI MPC’s decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline."
"The RBI's decision to maintain the repo rate at 5.25% reinforces confidence in an already resilient residential real estate market by providing certainty around borrowing costs and creating a stable environment for homebuying decisions. The broad consensus among economists that the repo rate is likely to remain at 5.25% through the remainder of 2026 further supports homebuyer sentiment, financing decisions, and healthy residential demand over the next 6–12 months. For homebuyers, predictable EMIs improve purchase planning and affordability, while developers benefit from greater visibility in project execution, financing, and long-term capital allocation. The most supportive RBI policy signal for the housing sector would be a continued commitment to price stability, a predictable interest rate trajectory, faster transmission of policy rates into home loan pricing by banks, and adequate systemic liquidity to ensure efficient credit flow. Together, these measures would improve housing affordability, make home loans more accessible, strengthen end-user demand, and enable developers to plan investments, financing and project execution with greater confidence. A stable and well-transmitted monetary policy environment will play a pivotal role in sustaining long-term growth across India's residential real estate sector."
Mr. Sandeep Agarwal, Executive Director – Finance & Group CFO, Elan Group
“The RBI’s decision to maintain the repo rate at 5.25% provides stability and greater visibility for long-term investment decisions amid evolving global and economic conditions. For the real estate sector, a stable rate environment supports buyer confidence and strengthens the outlook for projects backed by strong fundamentals, strategic locations and credible execution. This will continue to support sustainable growth across all housing segments.”
"Mr. Rahul Singla, Director, MAPSKO Group
"The RBI's decision to keep the repo rate unchanged at 5.25% underscores its commitment to maintaining a fine balance between economic growth and financial stability. The real estate sector has demonstrated remarkable resilience, with demand continuing to remain robust across key markets. Real estate has consistently been regarded as one of the most reliable long-term wealth creation avenues, and a stable monetary policy further reinforces this confidence. The decision is also expected to support developers by ensuring better financial visibility, improved liquidity, and greater confidence in planning and executing projects efficiently.
Adil Altaf, CEO, ANHAD Developers
“The RBI's decision to maintain the repo rate reflects a balanced approach. As we noted ahead of the policy, stability is just as important for developers managing construction finance and land acquisition as it is for homebuyers. Predictable borrowing costs enable better project planning, timely execution, and sustained buyer confidence, creating a supportive environment for the sector's long-term growth."
Varun Garg, Director, Karyan Group
“The decision to keep the repo rate unchanged comes as a positive signal for the housing sector, particularly at a time when buyer sentiment remains strong. Stable borrowing costs encourage end-users to move ahead with purchase decisions while allowing developers to maintain project momentum. With demand for premium homes continuing to grow, consistent policy support and improved liquidity will further strengthen market confidence and contribute to the sector's sustainable growth trajectory.”
Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd
“The RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector. A steady rate environment ensures predictability in home loan costs, encouraging buyer confidence and sustaining housing demand. For developers, stable funding conditions and improved liquidity visibility enable better planning of project launches and execution timelines. Overall, this decision reinforces a growth-oriented environment and strengthens confidence across key real estate markets.”
Pushpender Singh – Managing Director, JMS Group
"The decision to keep the repo rate unchanged brings much-needed stability and predictability for the real estate sector. For homebuyers, it sustains affordability and supports sentiment in an already improving market. For developers, it allows better financial planning and project execution. However, timely liquidity support and faster approvals remain critical to maintain momentum. A balanced policy approach like this helps build long-term confidence and keeps the sector aligned with India’s growth aspirations."
Sudeep Bhatt, Director Strategy, Whiteland Corporation
"The RBI MPC has decided to keep the repo rate unchanged at 5.25%. The stance is significant for the real estate sector. It means stable home loans which directly boost housing demand, while improving liquidity for developers. The sector stands to benefit from the re - established buyer sentiment and a growth in investment appetite with EMIs and borrowing cost stabilising."
Jitender Yadav, Director, Roots Developers
"The RBI’s decision to maintain the repo rate at 5.25% is, a catalyst for renewed enthusiasm in the real estate sector. Stability in borrowing costs will make home loans more accessible which will increase demand of home buyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets. We look forward to a pragmatic environment for the real estate industry"
Mr. Avneesh Sood, Director of Eros Group
"RBI's decision to keep repo rate unchanged at 5.25% and retain neutral stance signals of stability amid uncertain global environment This ensures continuity in financing conditions for the housing sector and gives homebuyers greater confidence to go ahead with purchase decisions without the immediate risk of higher EMIs. The RBI’s view that inflation pressures are largely supply-driven and domestic demand has held up also supports a measured policy approach. A stable interest rate environment gives developers better visibility on project planning and sales. Going forward, a calibrated policy easing at an appropriate stage would further improve affordability, broaden the homebuyer base and maintain healthy residential demand across markets if inflation moderates as projected"
Mr. Kamlesh Thakur, President, NAREDCO Maharashtra
"The RBI's decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a prudent approach amid global uncertainties and evolving inflation dynamics. While the industry was hopeful of a rate cut, policy stability itself provides confidence to both developers and homebuyers. With borrowing costs remaining unchanged, housing demand is expected to continue its momentum, particularly in the mid-income and premium segments. The upward revision of India's GDP growth projection to 6.7% underscores the resilience of the domestic economy. Going forward, as inflation moderates in line with the RBI's expectations, there could be room for a more accommodative monetary policy. A future rate cut would further improve housing affordability, strengthen buyer sentiment, and accelerate investments across the residential and commercial real estate sectors."
Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
"The RBI's decision to keep the repo rate unchanged brings continuity and predictability to the market at a time when global geopolitical developments and inflationary pressures continue to create uncertainty. Stable interest rates ensure that home loan EMIs remain broadly unchanged, allowing prospective buyers to make informed purchasing decisions without concerns over rising borrowing costs. The Indian housing market has demonstrated remarkable resilience over the past few years, supported by strong end-user demand, rising incomes, and growing confidence in the economy. With GDP growth projected at 6.7%, we expect housing demand to remain healthy across key micro-markets."
Mr. Shilpin Tater, Managing Director, Superb Realty
"The RBI's decision to maintain the repo rate is a balanced move considering the current global economic environment and domestic inflation outlook. Policy stability is particularly important for the real estate sector as it enables developers to plan projects with greater financial certainty while allowing buyers to benefit from stable lending rates. Demand for quality residential & commercial developments, especially in well-connected urban locations, is expected to remain robust. We remain optimistic that supportive monetary measures in the future could further strengthen investment activity."
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
"The RBI has adopted a measured and responsible approach by maintaining the repo rate while closely monitoring inflationary trends and global developments. Although a rate cut would have enhanced affordability for homebuyers, the decision to maintain stability provides confidence to both consumers and developers in an uncertain macroeconomic environment. The premium and luxury housing segments continue to witness healthy demand driven by aspirational buyers and strong wealth creation, while the broader residential market remains supported by genuine end-user demand. Stable financing costs, coupled with India's improving growth outlook, should sustain market momentum."
Mr. Dhruman Shah, Promoter, Ariha Group
"The RBI's decision to keep the repo rate unchanged reflects its focus on balancing growth with inflation management amidst ongoing global uncertainties. For the real estate sector, policy continuity is a positive outcome as it preserves financial stability and ensures that financing conditions remain predictable for both developers and homebuyers. Stable interest rates, combined with sustained infrastructure investments and urbanization, will continue to support residential sales."
Mr Abhishek Raj, Promoter, Jenika Ventures
"For a sector that depends on long-term planning and sustained investment, continuity in monetary policy is as valuable as lower borrowing costs. The RBI's decision to keep the repo rate unchanged at 5.25% provides much-needed certainty for developers, homebuyers, and investors alike. Residential demand continues to be supported by urbanization, rising household incomes, and improving infrastructure, while the commercial segment is benefiting from business expansion and increasing occupier activity. This balanced policy approach creates a conducive environment for sustained growth across both asset classes. We believe that long-term value creation in real estate will increase"
Ashok Nehlia, Founder & CEO, Nehlia Developers
"Policy stability always plays an important role in strengthening long-term investment sentiment, and the RBI's decision to maintain the repo rate at 5.25% comes as a reassuring signal for the real estate sector. While the premium farmhouse segment is largely driven by lifestyle aspirations and long-term wealth creation, a stable interest rate environment further strengthens buyer confidence and investment planning. Today's consumers are increasingly looking beyond conventional housing, with growing interest in spacious, nature-centric developments that offer privacy, wellness, and an enhanced quality of life. As connectivity improves and infrastructure expands across emerging destinations, premium farmhouse communities are becoming an attractive investment proposition. We believe that stable monetary policy, coupled with sustained economic growth, will continue to support demand for high-quality lifestyle developments and encourage long-term investments in this evolving segment."
Mr Pawan Sharma, Managing Director, TRG Group
"Commercial real estate thrives in an environment where businesses have the confidence to plan ahead, expand operations, and invest for the long term. For developers like TRG Group, the RBI's decision to retain the repo rate at 5.25% reinforces confidence by providing a stable monetary framework for businesses and investors. A predictable interest rate environment supports retailer expansion, strengthens occupier sentiment, and encourages capital deployment across commercial assets. As urban infrastructure continues to improve and consumer spending remains resilient, destinations such as TRG The Mall are well-positioned to benefit from stronger leasing activity, higher footfalls, and sustained demand. We believe this policy stability will continue to create a favorable ecosystem for commercial developments while unlocking long-term value for businesses, investors, and consumers alike."
Sam Chopra, President and Country Head, eXp Realty India
“The RBI’s decision to keep the policy repo rate unchanged at 5.25% comes at a time when global markets continue to face uncertainty from geopolitical developments and commodity price movements. In such an environment, a steady monetary policy provides businesses and investors with greater certainty for planning and investment decisions. For the real estate sector, stable interest rates help maintain buyer confidence while allowing developers to plan projects without the uncertainty of rising financing costs. Although global factors such as energy and raw material prices will continue to influence construction costs, India's domestic demand and ongoing infrastructure investment continue to provide strong support for the sector. A predictable policy environment is therefore important in sustaining long-term investment across residential and commercial real estate.”
Rohit Kishore, CEO, Hero Realty
"The RBI’s decision provides much-needed stability amid global uncertainties. Predictable interest rates help businesses and consumers plan with confidence, while stable borrowing costs support homebuyers and investment activity. For the real estate sector, this move is expected to sustain buyer sentiment and contribute to steady, long-term growth."
Aman Sarin, Director & CEO, Anant Raj Limited
"This is a welcome move by the RBI, especially given the ongoing crisis in West Asia, which continues to put pressure on input costs across sectors. In such an environment, stability in interest rates is important for maintaining overall confidence in the market. A steady rate scenario helps in better financial planning and provides clarity for both businesses and homebuyers. When borrowing costs are stable, it becomes easier to plan investments, manage cash flows, and stay focused on execution."
At the same time, current home loan rates are still at reasonable levels, which supports buying decisions. For many homebuyers, affordability today is not just about lower rates, but about certainty in monthly payments. That confidence plays a key role in converting intent into actual purchases. Overall, this decision creates a supportive environment where demand can continue to build gradually, while allowing the sector to navigate external challenges with greater resilience.
Parvinder Singh, CEO, Trident Realty
"An unchanged repo rate provides a stable market condition for the real estate sector, where investment decisions are inherently long term. Buyers, today are evaluating projects on the basis of infrastructure, connectivity and overall value, and policy stability complements that decision-making process. For developers, it brings greater visibility in financial planning and project execution. With demand remaining steady across emerging growth corridors, the current policy stance is likely to reinforce confidence and support sustained activity in the residential market. "
Ashish Agarwal, Director, AU Real Estate
"The decision to maintain the repo rate reinforces stability in the housing market which is critical for sustaining buyer confidence. People buying premium homes are making a significant financial commitment, making predictability an important consideration in their decision-making. While interest rates are only one factor in the homebuying decision, a stable borrowing environment gives buyers greater confidence and one less reason to postpone their purchase. It also allows developers to focus on execution instead of constantly adjusting plans around changing financing conditions. We continue to see demand from buyers looking for better living spaces and steady monetary policy supports that confidence without creating unnecessary uncertainty."
Anil Godara, Founder and Managing Director, J Estates
"The RBI's decision to keep the repo rate unchanged offers much-needed predictability for the real estate sector. A stable interest rate environment enables buyers to evaluate homebuying decisions with greater financial clarity while allowing developers to maintain execution without disruption. In senior living, purchasing decisions are guided by long-term planning rather than short-term market sentiment. As demand for organized senior living communities continues to grow, policy consistency will play an important role in sustaining buyer confidence and encouraging responsible sectoral growth."
Anupam Rastogi, Co-Founder & CBO, Square Yards
“The residential real estate industry benefits from the RBI's decision to keep the repo rate at 5.25% since it promotes a steady and predictable borrowing environment. For creditworthy homeowners, financing conditions remain appealing because some lenders offer home loans at rates as low as about 7.25%. Stable borrowing prices, developer incentives, flexible payment plans, and competitive pricing could boost buyer sentiment and promote purchasing decisions as the holiday season draws near. Because ready-to-move-in and near-completion properties offer more assurance regarding delivery and the possibility of long-term value appreciation, the atmosphere is especially favorable for individuals contemplating such properties”
Amit Prakash Singh, Co-Founder and CBO, Urban Money
“The RBI’s decision to maintain the repo rate at 5.25% reinforces a stable and predictable borrowing environment, which is positive for the residential real estate sector. With select lenders offering home loans at rates starting at approximately 7.25%, financing conditions remain attractive for creditworthy homebuyers. As the festive season approaches, stable borrowing costs, combined with developer incentives, flexible payment plans and competitive pricing, could strengthen buyer sentiment and encourage purchase decisions. The environment is particularly favourable for those considering ready-to-move-in and near-completion properties, which offer greater certainty around delivery and the potential for long-term value appreciation.”
Mr. Mohit Goel, Managing Director, Omaxe Ltd
“The RBI’s decision to keep the policy rate unchanged reflects a balanced approach amid global uncertainty, inflation concerns, and geopolitical risks. At the same time, India’s economy remains strong, driven by infrastructure development, urbanisation, and steady end-user demand. The rate cuts over the past year have already improved affordability and boosted buyer confidence. Maintaining the current rate now provides much-needed stability and certainty for both homebuyers and businesses.”
Ms Binitha Dalal, Founder & Managing Director, Mt. K Kapital
"I welcome RBI's decision to maintain status quo on the repo rate. This is the appropriate call at this juncture, much needed at the current time, particularly with inflation beginning to breach the 4% target on the one hand, and the geopolitical situation remaining far from settled on the other.
With the West Asia conflict continuing to evolve, supply chains into India remain constrained across several sectors, and this is beginning to visibly reflect in inflation pricing. The rupee, too, continues to trade under depreciation pressure against the dollar. These are structural headwinds and they will progressively narrow the MPC's room to hold a neutral stance.
The RBI has, encouragingly, revised its FY27 growth forecast upward to 6.7%, from 6.6% earlier, signalling continued confidence in domestic demand even as external risks mount. However, for the country to actually deliver on this upgraded trajectory, meaningful reform will be required on the government's part pending which, achieving this growth rate will be considerably more challenging.
It is therefore critical, going forward, to watch what kind of policy preparedness both the RBI and the central government front-load; an accommodative pivot from the RBI, complemented by supportive fiscal reforms from the government so that India stays ahead of the curve on growth, rather than merely reacting to the headwinds posed by the West Asia crisis."
Ms. Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa & Resorts Pvt. Ltd
“The RBI's decision to maintain the repo rate at 5.25% provides a welcome sense of stability at a time when consistency in policy is as important as market confidence. A stable interest rate environment encourages long-term homeownership decisions and reinforces positive sentiment among end-users. It also complements the strong fundamentals emerging across Tier 2 markets, where infrastructure-led development and evolving lifestyle aspirations continue to shape demand. As the sector matures, this kind of policy continuity will support thoughtful, sustainable growth and encourage the creation of well-planned communities that deliver long-term value.”
Ashish Bhutani, CEO, Bhutani Infra
"Maintaining the repo rate is a prudential decision by the RBI that has come about after weighing various factors regarding the need to balance between fostering economic growth and preserving macroeconomic stability. A steady interest rate regime gives much-needed predictability to the market participants, which enables them to take important decisions in a more structured manner. The real estate segment is also benefited by policy consistency, and this helps in improving buyer sentiment, proper planning of projects, and ensuring financial discipline within the industry. The fast-paced growth in the infrastructure segment and the strength in demand levels mean that a steady monetary policy would help in keeping the investment momentum going."
Ravikant, Co- Founder Elegance Infra and Enterprises
“Maintaining the repo rate by RBI is a favourable sign for the luxury real estate market. Interest rate stability increases confidence levels amongst the high-net-worth individuals and non-resident Indians, which helps in making informed decisions for investing in expensive and valuable properties. Although this segment of real estate market is less susceptible to interest rates, yet stability in policy makes them more favorable for investment in luxury property segments.”
Raghunath Reddy Bhattagiri, MD and Founder, Triguna Projects
“The RBI’s policy on retaining the repo rate is a sign of a prudent stance considering the changing global situation. This stability in the interest rate is good news for the real estate sector since it helps to keep the mood of the buyers alive and EMI rates for home loans constant for the users. In a scenario where the risks of inflation are still there and global headwinds are still strong, the stable rate system gives both the developers and buyers a chance to make plans.”
Mr. Ravi Agarwal, Managing Director and Chairman at Lloyds Realty
"The RBI's decision to maintain the repo rate reflects a measured approach in navigating evolving global and domestic economic conditions. Policy stability provides greater confidence to businesses, investors, and homebuyers while supporting long-term planning.
For the real estate sector, a stable interest rate environment continues to encourage homebuyer confidence and enables developers to plan investments with greater certainty. In the Mumbai Metropolitan Region (MMR), strong infrastructure development, urban redevelopment, and sustained demand continue to reinforce the market's long-term growth potential.
We remain optimistic about India's real estate sector, with structural demand, improving connectivity, and continued policy support positioning it for sustainable long-term growth."
Dr. Amit Goenka, Chairman & MD of Nisus Finance
"The RBI’s decision to keep the policy repo rate unchanged at 5.25% adds to stability when global uncertainties continue to impact investment sentiment. Indian domestic growth remains resilient despite external headwinds The commitment to capital expenditure in the Union Budget of ₹12.22 lakh crore continues to support infrastructure creation, while the RBI’s steady hand on rates provides comfort on the macroeconomic front even as inflation is expected to firm up slightly before easing later in the year. Demand across the real estate ecosystem continues to be underpinned by credit growth and ongoing investment in city infrastructure.
The Reserve Bank of India’s (RBI) upward revision of its FY27 growth forecast to 6.7% indicates confidence in the medium-term trajectory of the economy. Stability of interest rates in the real estate sector provides greater certainty to developers, institutional investors and homebuyers, besides aiding deployment of capital into long gestation projects. Stable liquidity and predictable borrowing costs improve yield visibility and asset valuations for REITs, which makes them more attractive as long-term investment vehicles. Policy stability is a key enabler for continued investment across the commercial real estate and infrastructure landscape."
Sharad Mittal, Founder & CEO of Arnya Real Estates Fund Advisors
"The RBI's measures are a positive step towards ensuring that liquidity reaches the real economy without compromising financial discipline. A stable interest-rate environment, coupled with continued liquidity support, creates a conducive backdrop for credit expansion. For the residential real estate sector, easier availability of construction finance is as important as home loan affordability. As capital becomes more accessible, developers with strong balance sheets, sound governance and proven execution should be better positioned to accelerate project delivery, supporting both housing supply and broader economic growth. Affordable home loan will help in sustaining the residential demand and support project level liquidity for developers. We believe these measures will improve credit confidence across the ecosystem and sustain momentum in India's housing market."
Anil Pharande, Founder & Chairman, Pharande Spaces
"The RBI’s unanimous call to keep rates at 5.25% is kind of a welcome sign of stability for the real estate space. With no EMI jump coming into the picture, homebuyer mood stays guarded, particularly in the affordable along with mid-segment buckets. This little status quo gives fence-sitters that extra confidence to wrap up purchases in the middle of the ongoing festive stretch, without feeling like borrowing costs might creep up. Still, developers cannot get comfortable, because even though rates are steady the input costs are moving higher. So these pressures need to be absorbed from inside rather than just pushed onto buyers, so that affordability stays in place more or less, not gets diluted."
Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd
"Now, a rate hold is better than a rate hike, sure, but 5.25% is still pretty elevated for first-time buyers in the affordable segment. The EMIs on ₹30–40 lakh loans remain steep and without an actual rate cut, the affordability gap doesn’t really close. The real lift for this segment will likely come from state-level support, or maybe higher PMAY allocations, not only from RBI decisions alone. Builders targeting this band should really intensify, using creative payment structures—like 5:95 plans—to bridge the difference. The neutral stance is reassuring but it doesn’t address the demand-side liquidity crunch that smaller buyers deal with every day."
Mr. Aman Gupta, Director of RPS Group
"In luxury and commercial real estate, the repo rate hold is almost beside the point, really—those buyers aren’t that EMI-sensitive, they’re more into capital growth and rental yields, that kind of thing. The real headache feels more like global uncertainty, and how it spills over into foreign institutional buying. Since rates are steady for now, we could see NRIs still channeling money into Indian real estate, attracted by reasonably stable outcomes. But developers have to keep an eye on the core inflation trail, very carefully; if it firms up, then the next move may get more hawkish, not softer. For now this pause helps us introduce fresh inventory, without that annoying distraction from loan rates that keep wobbling."
Nikhil Mawale - Co- Founder & CEO, PropertyDrone Realty
"Keeping the repo rate at 5.25% with a neutral stance sounds sensible, but it doesn’t really juice up housing demand when inventory is already high. People hunting for rental income will likely like the predictable EMIs, yet possible price appreciation still depends much more on project delivery and whether the location truly makes sense, not on the direction of interest rates. So my take is simple don’t let the current situation create FOMO. Use the festive deals to push the negotiation, still be firm, but keep in mind that rates can only creep upward from here if global energy prices stay stubborn. Think of it as a window to buy wisely, not buy quickly. If you can, lock in fixed-rate loans now as a hedge against future uncertainty. "
Ramani Sastri - Chairman & MD, Sterling Developers
"At a time when businesses are cautiously optimistic about expansion, the decision by RBI to maintain a supportive stance is welcome. The housing sector has been witnessing healthy demand, supported by lower home loan rates and strong consumer confidence. A stable interest rate regime ensures greater predictability in funding for developers, facilitating smoother project execution, while also enabling homebuyers to make long-term financial decisions with enhanced confidence supported by stable EMIs. This continuity not only strengthens overall market sentiment but also sustains demand momentum across segments, reinforcing real estate’s standing as a resilient and progressively evolving asset class. Overall, India’s macroeconomic resilience, supported by steady growth and a stable financial system, continues to underpin long-term confidence in the real estate sector, even as global headwinds persist. With infrastructure growth, urbanization, and rising consumer aspirations driving long-term demand, a growth-oriented monetary policy can play a significant role in sustaining demand across segments and provide further momentum to the real estate sector’s growth in the coming quarters."
Ashish Acharya, Founder & CEO, Propsoch, India’s first buyer-centric real estate advisory platform
"The continuity in rates is constructive for the real estate sector, where predictability in financing costs plays a critical role in sustaining demand and investment sentiment. A pause in repo rates will help in mitigating the impact of potential increase in construction costs and prevent forced price increases in an already inflated market. For the homebuyers, this policy continuity significantly reinforces lot of confidence by providing greater visibility on borrowing costs and signalling sustained macroeconomic stability. When buyers know their loan EMIs aren't going to jump overnight, they can stop rushing and start making calmer, smarter, and more data-driven decisions about where they invest their life savings. Overall, the accommodative interest rate environment will encourage many first-time homebuyers to enter the market."
Manas Mehrotra, Founder, 315Work Avenue, one of India’s prominent managed workspace providers
"The RBI’s decision supports a balanced environment for the real estate sector, helping maintain demand traction and providing the confidence needed for continued market activity in the near term. Stable borrowing conditions and continued liquidity support are important for startups, SMEs, and enterprises alike - all of which are key demand drivers for the flexible workspace sector by supporting sustained leasing momentum and long-term investment decisions. This is particularly important at a time when leasing activity is gaining traction across key markets. For the flexible workspace industry, continued macroeconomic stability and improved business confidence are also expected to drive stronger demand from GCCs, and corporates seeking scalable and agile office solutions. Hence, we expect a supportive stance to have a pronounced impact on the real estate sector, easing borrowing costs and improving credit availability. Overall, a stable interest rate environment offers much-needed predictability, supporting informed decision-making. As businesses increasingly adopt agile and cost-efficient workspace strategies, a supportive policy framework can further accelerate expansion plans and strengthen India’s evolving commercial real estate ecosystem. As India continues to strengthen its position as a preferred destination for GCCs and global investment, a supportive macroeconomic environment will remain an important enabler for office demand and long-term commercial real estate growth."
Mr. Harsh Jagwani, Managing Director, Notandas Realty
"We appreciate the RBI keeping the repo rates unchanged during this period as well. These stable rates will not only help homebuyers but will also help developers across the country as well. Sales of residential homes, especially in the luxury and premium markets have witnessed continued growth momentum in Q2 of FY2026. With new projects and units also being launched, rate stability will help developers plan their investments and project execution timelines with certainty. Steady rates also help with stable borrowing costs and predictable as well as manageable EMIs. As geopolitical tensions ease up and supply chains stabilize, the growth momentum in the commercial segment is expected to rise up again in the next few months of this year. Stable rates will help in boosting investor confidence and capital inflows in commercial assets. This in turn will further renew the momentum in the leasing market driven by Global Capacity Centre (GCC) expansion and domestic occupiers."
