With the Reserve Bank of India’s Monetary Policy Committee (MPC) set to announce its decision on October 7, real estate developers across the National Capital Region (NCR) are expecting the central bank to maintain the repo rate at 5.25%, particularly as the sector enters the crucial festive homebuying period.
The RBI has maintained the repo rate at 5.25% through its last four policy reviews in 2026. More broadly, the central bank has kept the policy rate unchanged on 12 occasions since the beginning of 2024, underlining a period of monetary stability. The repo rate was maintained at 6.50% throughout the six MPC reviews of 2024, while the RBI subsequently embarked on a rate-cut cycle in 2025, reducing the rate by a cumulative 125 basis points to 5.25%. The rate has remained at 5.25% through the February, April, June and August 2026 reviews.
For NCR’s residential real estate market, developers believe another status quo would provide greater predictability at a time when homebuyer activity traditionally accelerates around Navratri, Dussehra and Diwali. The sector has already benefited from the lower interest-rate environment created by the 2025 easing cycle, and maintaining the current rate could help preserve this momentum rather than introduce fresh pressure on borrowing costs.
If the RBI maintains the repo rate at 5.25%, homebuyers could benefit from greater stability in home-loan costs and EMIs, making it easier to plan and commit to a property purchase during the festive season. For prospective buyers, particularly first-time homebuyers, stable borrowing costs can support loan eligibility and improve overall purchase affordability, allowing them to access homes with greater financial confidence. Developers, meanwhile, would benefit from greater visibility on financing costs and project cash flows, enabling them to maintain construction schedules, launches and customer-focused festive offers. In effect, a stable rate environment can make the homebuying decision easier for buyers while simultaneously supporting developers in bringing more inventory to the market. Industry commentary following the August policy similarly noted that stable borrowing costs and home-loan EMIs could support festive-season housing demand.
For homebuyers, the upcoming festive season could present an attractive window to evaluate and invest in Gurugram’s established and emerging residential micro-markets, including Golf Course Road, Dwarka Expressway, Golf Course Extension Road (GCER), Southern Peripheral Road (SPR), New Gurugram and Sohna Road. With improving connectivity and infrastructure such as the Delhi-Gurugram-Jaipur Expressway, Dwarka Expressway, Sohna Elevated Road, proximity to IGI Airport, the Delhi-Mumbai Industrial Corridor (DMIC) and the upcoming Namo Bharat connectivity, these corridors are increasingly offering buyers a wider choice of homes, connectivity advantages and long-term growth potential. A stable interest-rate environment can further strengthen buyer confidence by providing greater visibility on home-loan costs and EMIs. For those planning to purchase a home, the festive period could therefore be a timely opportunity to compare projects, avail festive offers and select a property that best matches their budget, lifestyle and long-term aspirations.
What realty expert say?
Pushpender Singh, Managing Director, JMS Group, "As we head into the October MPC meeting, the RBI faces a delicate balance act between managing domestic inflation and navigating global economic ripples. As an expert, I expect a ‘hold’ strategy to prevail, providing a sense of continuity that the market currently craves. In the luxury segment, we’re seeing that high end buyers remain largely unaffected by rate cycles, prioritising lifestyle and asset value above all else. Overall, we’re in a wait and watch stance, the market is resilient till now."
Sudeep Bhatt, Director-Strategy, Whiteland Corporation said, "With global headwinds and domestic inflations, we anticipate the RBI MPC will maintain a status quo on the benchmark repo rate at 5.25% during the upcoming meeting. A rate pause offers crucial predictability for developers and homebuyers, allowing project timelines and capital allocation strategies to proceed without rate shock. The ongoing momentum in the luxury and premium residential sectors remains resilient. Policy stability at this juncture reinforces long-term consumer sentiment, reassuring homebuyers that borrowing costs will remain anchored for foreseeable quarters."
Yashank Wason, Managing Director, Royal Green Realty says, "The real estate sector is closely watching the RBI's policy decision, particularly against the backdrop of ongoing global uncertainties and volatile financial markets. A favorable monetary stance would enhance liquidity, improve borrowing conditions and support housing demand across segments. Over the last few years, affordability has played a critical role in driving residential sales, and any reduction in financing costs would further strengthen buyer confidence. We expect the RBI to strike a balanced approach that supports economic growth while ensuring macroeconomic stability, creating a conducive environment for long-term real estate expansion."
Varun Garg, Director, Karyan Group said, "We expect the RBI to maintain the repo rate in its upcoming policy announcement, providing much-needed stability to the housing market. A status quo on interest rates will reinforce homebuyer confidence, especially among first-time buyers and end-users who have been closely tracking borrowing costs. Stable lending rates create a predictable environment for purchase decisions, supporting sustained demand in the residential real estate sector. In a market like Ghaziabad and the wider NCR, where affordability and financing remain key purchase drivers, policy continuity is likely to encourage fence-sitters to move ahead with their homebuying plans. At Karyan Group, we believe that steady monetary policy, coupled with improving infrastructure and positive consumer sentiment, will continue to support healthy momentum in the residential market over the coming quarters."
The timing of the October policy is particularly important for the sector. A recent industry assessment noted that a rate hike could affect homebuyer affordability, festive-season demand and developer financing costs, while a stable rate could provide greater visibility to both sides of the real estate ecosystem.
While inflationary pressures and global developments have increased expectations of a possible rate hike, the real estate industry continues to favour stability during the festive selling season. A Reuters poll found that nearly 60% of economists expected a 25-basis-point hike, which highlights the uncertainty surrounding the October policy decision.
For NCR developers, therefore, a status quo at 5.25% would not merely represent continuity in monetary policy, it could provide an important window of stability for homebuyers and developers during one of the most critical sales periods of the year.
