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The Reserve Bank of India's decision to keep the repo rate unchanged at 5.25% has been viewed positively by real estate stakeholders, who expect it to support stable demand and buyer sentiment. Industry leaders believe that steady interest rates will help maintain affordability, keep EMIs predictable and provide developers with better visibility on financing costs. While global uncertainties and rising input costs remain concerns, the policy continuity is seen as a stabilising factor for both residential and commercial segments. The move is also expected to support long-term investments and sustain momentum across key housing markets.
The Reserve Bank of India's decision to retain the repo rate at 5.25% has drawn a largely positive response from real estate developers and industry stakeholders, who see it as a move that supports stability in a period of global uncertainty. Advertisement
According to Mr. Prashant Khandelwal, Joint Secretary at CREDAI-MCHI and Director and CEO of Agami Realty, the unchanged rate is expected to keep market sentiment stable, especially in the affordable and mid-income housing segments. He indicated that while borrowing costs may not reduce immediately, steady home loan rates and EMIs will continue to support demand and sustain affordability levels. He also noted that developers benefit from predictability in construction financing costs.
Mr. Mayur R. Shah, Vice-Chairman of Marathon Nextgen Realty Ltd. and former president of CREDAI-MCHI, shared a similar view. He stated that holding the repo rate steady is reassuring for both homebuyers and developers as it keeps EMIs predictable and supports buying sentiment. He added that policy continuity is constructive for demand across both residential and commercial real estate, particularly at a time when global uncertainties and costs are rising.
Mr. Mohit Goel, Managing Director of Omaxe Ltd., observed that the central bank's stance reflects a balanced approach towards sustaining growth while ensuring macroeconomic stability. He explained that a stable rate environment is important for long-term investments in sectors such as real estate and infrastructure. He further pointed out that predictable monetary conditions support housing demand, especially in emerging markets where infrastructure development is driving economic activity and urbanisation.
Ms. Amrita Gupta, Director at Manglam Group, noted that the neutral stance and unchanged rate provide relief to the sector. She said that stable interest rates help maintain buyer confidence and ensure that demand remains steady, particularly when homebuyers are sensitive to EMI fluctuations. She also highlighted that such consistency allows developers to plan project launches and pricing with greater clarity.
Mr. Avneesh Sood, Director of Eros Group, stated that the decision reflects a cautious pause amid global uncertainties, including the West Asia conflict and its potential impact on inflation through energy prices. He pointed out that following cumulative rate cuts in the previous year, residential demand has already adjusted to higher price levels, with key markets witnessing around 8-12% year-on-year price appreciation. He added that the current pause helps sustain buyer sentiment without creating additional affordability pressures.
At the same time, he cautioned that elevated input and financing costs continue to impact developer margins, even though bank credit growth remains strong. He also noted that foreign direct investment has seen around 20% growth, indicating continued investor confidence, though prolonged geopolitical tensions could delay institutional inflows and affect construction timelines.
Mr. Lalit Parihar, Managing Director of Aaiji Group, said the housing market is currently undergoing a phase of correction after a period of strong sales. He observed that ongoing global conflicts have added to the challenges, and in this context, the unchanged rate is a supportive move. He explained that it enables borrowers to fully benefit from the transmission of earlier rate cuts and helps strengthen confidence in the sector.
Mr. Ankur Jalan, CEO of Golden Growth Fund, welcomed the decision as a sign of the central bank's close monitoring of inflation and growth dynamics. He noted that a stable policy environment supports overall economic growth and encourages capital inflows into financialised real estate products such as Alternative Investment Funds. He also indicated that global uncertainties are prompting high-net-worth individuals and non-resident Indians to reassess their investment strategies and diversify into such instruments.
Mr. Bhavesh Shah, Joint Managing Director of Today Group, stated that the policy reflects a confidence-driven approach supported by stable inflation and steady growth. He added that a consistent interest rate environment plays a key role in maintaining affordability and supporting end-user demand. He also emphasised that predictability in policy is essential for long-term investment decisions and will help keep residential demand resilient alongside ongoing infrastructure development.
In the past few quarters, the real estate sector has shown strong recovery, supported by improved demand, infrastructure push and increased participation from both domestic and global investors. However, rising construction costs and external economic pressures continue to remain key concerns for developers.
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The views, opinions, and information expressed in this article are solely those of the author and do not necessarily reflect the views of Prop News Time. The content has not been independently verified or endorsed by Prop News Time. Readers are advised to exercise their own discretion and seek professional advice if required.
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