For homebuyers, the difference matters. Floating-rate EMIs usually rise with a lag when the repo rate goes up, and this comes just as the festive season begins, when developers see their strongest sales. We asked real estate experts what they expect from the policy and what it could mean for demand.
Mr. Ankur Jalan, CEO, Golden Growth Fund (GGF),
"While inflationary pressures and currency volatility warrant close monitoring, a repo rate hike at this juncture could raise the cost of capital and may affect investment decisions across the real estate ecosystem. For AIFs, policy stability is important for investment planning, project financing and exit visibility. With institutional capital showing strong confidence in Indian real estate, a pause would help preserve this momentum. The RBI should ideally allow more time to assess the persistence of imported inflation before tightening monetary conditions."
Mr. Suresh H. A., Managing Director, Sanjeevini Group,
"While 25bps hike in repo rate looks likely, the RBI should consider maintaining a status quo in October MPC, as a hike could have a direct bearing on homebuyer sentiment and affordability. With property values having appreciated across key residential markets, even a marginal increase in home loan rates can influence purchase decisions, particularly among first-time and mid-income buyers. The festive quarter is traditionally an important period for residential sales, and stable interest rates would help sustain buyer confidence and encourage homeownership."
Mr. Lalit Parihar, Managing Director, Aaiji Group, a real estate firm,
"A repo rate hike could increase the overall cost of property acquisition and financing at a time when buyers are already evaluating affordability carefully. For emerging real estate destinations, where demand is closely linked to infrastructure development, long-term investment confidence and future growth prospects, policy stability is particularly important. The RBI should consider holding rates in October and assessing the inflation trajectory over the next quarter. A stable interest-rate environment would support festive-season buying, sustain momentum in residential and plotted developments, and allow the benefits of infrastructure-led growth to translate into actual property demand."
Vikas Garg, Joint Managing Director, Ganga Realty,
“The upcoming RBI policy review comes at an important time for the residential real estate sector, with the festive season also set to bring renewed activity among homebuyers. While borrowers will closely watch the movement of interest rates and its impact on home loan affordability, the underlying demand for quality housing remains healthy. Festive periods traditionally see greater buyer engagement, and this year, we expect the combination of improving consumer confidence, stable economic fundamentals and attractive offerings from developers to support housing demand. In markets such as Gurugram and the wider NCR, the aspiration for homeownership continues to remain strong, supported by infrastructure development, connectivity and employment opportunities. Irrespective of short-term rate movements, buyers are increasingly evaluating homes from a longer-term perspective. We remain positive about the housing market and expect the festive season to further strengthen momentum and encourage more end-users to take their home-buying decisions forward.”
HS Kandhari, Co-founder & Executive Director - Harmony Infra,
“The RBI’s upcoming policy will be closely watched by the real estate sector, as interest rates have a direct impact on home loan affordability and buyer sentiment. A stable interest-rate environment gives buyers greater confidence to plan their purchases, while any reduction in rates could provide an additional push to housing demand. At the same time, the market today is being supported by factors such as improving connectivity, infrastructure development and a growing preference for better-quality homes. This is especially relevant in the premium and second-home segments, where buyers are also looking at location, lifestyle and the long-term value of their investment.”
Raghunath Reddy Bhattagiri, Founder Triguna Projects,
"With the industry expecting a small hike in the repo rate, even a 25 bps rise may lift the cost of borrowing for some home buyers. Affordability will matter more now. But the market has held up through earlier hikes, helped by strong end-user demand and better connectivity around Bangalore. Buyers are choosing land they will actually use, not just hold. At Triguna, families come to us for open space and a community they can grow with. That need is much bigger than a small change in rates, and it is not going away."
Amit Porwal, Director Aranyakaa Farms,
"The industry is expecting a small hike in the repo rate, which may raise home loan EMIs a little. For farmland, the effect is limited, because many buyers pay from their own savings and see land as a long-term asset. What they look for is clear titles, managed farms and good upkeep of the land. Developers who deliver on these will not feel much pressure from a rate change. At Aranyakaa, we believe demand for managed farmland will stay strong, as people now want assets that are safe and easy to hold."
Ravi Prakash Pandey, Founder and Chairman, Amrawati Group,
“A stable interest rate regime is vital for maintaining the impetus of the Indian real estate industry. Any easing of the interest rates, on a measured scale, would be beneficial for buying homes and investing in addition to making developers continue with their expansion programs. Nevertheless, macroeconomic stability is also imperative for sustainable growth."
Yateesh Wahaal, Director, M3M,
"The upcoming monetary policy announcement will be closely watched by both homebuyers and the real estate sector. While the RBI continues to balance inflation and growth, the housing market has remained resilient, supported by strong end-user demand and positive buyer sentiment. Any indication of policy stability or a supportive stance would further strengthen confidence, improve affordability, and encourage homebuying, particularly in the mid-income and premium segments. A stable interest rate environment also provides greater certainty for developers and investors. Backed by robust infrastructure development and rapid urbanisation, India's residential real estate sector remains well-positioned for sustained growth."
Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited,
"If the Reserve Bank of India keeps the repo rate unchanged at 5.25 per cent, the policy would reinforce stability and confidence in the residential real estate market. A predictable interest rate environment allows homebuyers to plan long-term financial commitments with greater certainty, sustaining demand across mid-income, premium and luxury segments over the next 6–12 months. While a status quo is positive, a continued accommodative policy stance and adequate liquidity would further strengthen housing affordability and improve access to home finance. Stable borrowing costs also encourage developers to accelerate project execution and new launches, supporting sustained growth across the broader real estate sector."
Ashish Sharma, AVP Operations - Brahma Group,
"The upcoming RBI monetary policy announcement is expected to provide important cues for the housing market and the broader economic outlook. We expect the RBI to maintain the current repo rate, as a stable interest rate environment will reinforce homebuyer confidence and ensure greater predictability in borrowing costs. This is particularly important at a time when housing demand continues to remain resilient across both mid-income and premium segments. For developers, policy stability supports long-term investment planning, timely project execution and capital deployment. With robust infrastructure development, rapid urbanisation and strong economic fundamentals continuing to drive demand, we remain confident about the sustained growth trajectory of India's real estate sector."
Mr.Payas Agarwal, Director Great Value Realty.
"With inflation edging up and global crude and currency pressures persisting, we expect the RBI to hold the repo rate at 5.25% in October. That is not a negative for housing. Home loan rates have already eased through the earlier 125 bps of cuts, and stability gives buyers the predictability to commit. Festive-season demand remains driven by genuine end-users, especially in mid-segment and premium housing, where timely delivery matters more than marginal rate moves. What the sector needs is policy support, in terms of faster approvals, rationalised input costs and a higher home loan interest deduction limit to keep affordable housing viable. Luxury housing continues to remain resilient, as buyers in this segment often prioritise location, quality and brand credibility over rate movements."
“As we head into the RBI’s repo rate decision, the commercial real estate sector will be closely watching the direction of interest rates and its impact on the cost of capital. The policy environment influences not only borrowing costs, but also investment appetite, capital deployment and the timing of business expansion. With demand increasingly favouring quality commercial, retail and business spaces in well-connected growth corridors, investor and occupier confidence will remain important. A predictable rate environment would provide greater visibility for new investments and project planning. Conversely, a sustained increase in rates could encourage investors and businesses to take a more calibrated approach towards new commitments,”
Rajjath Goel, Managing Director, MRG Group,
“With the RBI’s upcoming repo rate decision, we believe a calibrated approach would be important to balance inflation management with the need to sustain economic momentum. For real estate, predictability in financing costs remains significant as home purchases are long-term commitments and buyer preferences continue to evolve. In Gurugram, we are seeing greater emphasis on thoughtful planning, efficient use of space, design and the overall quality of living. In this environment, a stable and predictable rate cycle would help buyers make decisions with greater confidence, while allowing developers to remain focused on creating well-planned communities that respond to the aspirations of today’s homebuyers,”
“The upcoming repo rate decision comes at an important juncture for real estate, with demand continuing to broaden across residential and commercial segments and beyond the established metropolitan markets. We believe a balanced and calibrated policy stance would help preserve confidence among buyers, investors and developers while providing greater visibility for future planning. At the same time, the emergence of new growth corridors and Tier-2 markets is creating significant opportunities, as aspirations for quality real estate continue to deepen. Stable financing conditions would support this expansion by enabling developers to respond to evolving demand while maintaining a disciplined approach to capital deployment and long-term development,”
Amogh Bansal, MD, MUREC,
“As the RBI prepares to announce its repo rate decision, we believe a balanced and calibrated policy approach will be important for sustaining the momentum in residential real estate. The sector is witnessing a steady evolution in buyer preferences, with increasing demand for well-planned developments, larger and better-designed spaces, quality and lifestyle-led offerings. At the same time, emerging locations are gaining greater relevance as infrastructure improves and aspirations for quality housing deepen.
“As we approach the RBI’s repo rate decision, we believe maintaining a measured approach to interest rates would be constructive for the real estate sector. The market has built considerable momentum, and a predictable borrowing environment can help sustain buyer confidence while giving developers greater visibility for project planning and execution. At the same time, consumers are becoming increasingly discerning, evaluating homes on design, space, quality and the overall living experience. Therefore, while a marginal movement in rates may not fundamentally alter demand, a sustained increase could make buyers more deliberate around high-value purchases. Policy stability would help preserve the current momentum,”
Ramani Sastri - Chairman & MD, Sterling Developers,
"The RBI should consider maintaining a status quo as a repo rate hike at this juncture could raise the cost of capital and may affect investment decisions across the real estate sector. This will also have a direct impact on homebuyer sentiment and affordability as even a marginal increase in home loan rates can influence purchase decisions, particularly among first-time and mid-income buyers. The festive season is an important period for the real estate sector, and stability in interest rates will help maintain homebuyer confidence. A stable interest rate regime also gives developers greater predictability in funding, allowing for smoother project execution while enabling homebuyers to plan long term with stable EMIs. As the sector continues to benefit from improved buyer sentiment and strong housing demand, we look forward to a supportive stance from the RBI in the upcoming monetary policy. We certainly believe that residential real estate will continue to see steady growth in the years to come, presenting good prospects for first-time purchasers as well as seasoned investors. The festive season will solidify the sector’s upward trajectory well into 2027, cementing the Indian real estate market as a key driver of economic growth."
Rayan Munawer, Founder & CEO, Terray Realty,
"With the festive season approaching, the RBI’s upcoming monetary policy decision will be closely watched by the residential real estate sector. For the homebuyers, this policy continuity significantly reinforces lot of confidence by providing greater visibility on borrowing costs. Beyond the immediate impact on homebuyers, greater stability in interest rates also provide developers with better visibility for planning new launches and managing inventory. A more favorable borrowing environment encourages buyers who have been waiting for the right time to enter the market to bring forward their purchase decisions. We are also seeing higher interest from buyers especially focused on premium plotted land projects. Overall, heightened confidence among both end-users and investors, driven by lifestyle upgrades and the pursuit of long-term value, is accelerating decision-making in the real estate. With residential demand supported by urbanization, improving infrastructure, and the continuing aspiration for home ownership, a supportive rate environment could help sustain housing demand in the months ahead. Overall, we remain positive about the housing market and expect the festive season to further strengthen momentum and encourage more end-users to take their home-buying decisions forward. That said, evolving global factors, will remain key watchpoints, as they could influence future rate trajectories and sectoral sentiment."
"We expect a supportive stance by RBI to have a pronounced impact on the real estate sector, easing borrowing costs and improving credit availability. 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. A predictable interest-rate environment would be positive for commercial real estate and enterprise expansion, as it can support business confidence and encourage companies to make longer-term workplace commitments. This is particularly important at a time when leasing activity is gaining traction across key markets. For the flexible office sector, the cost and availability of capital remain important, as flexible office space provider continue to invest in expanding high-quality workspace capacity. As festive demand signals stronger business confidence, modern occupiers are simultaneously seeking workplaces that offer speed, scalability, customisation, and lower operational complexity-making managed spaces increasingly relevant for the next phase of growth. Hence, while interest rates are one factor influencing commercial real estate, sustained demand for flexible workspaces will continue to be shaped by business expansion, workforce growth, and evolving workplace models. As businesses increasingly adopt agile and cost-efficient workspace strategies, a supportive policy framework can further strengthen India’s evolving commercial real estate ecosystem."
Parvinder Singh, CEO, Trident Realty,
"We expect the RBI to keep the repo rate unchanged in the upcoming policy review, as a stable interest rate environment would provide continuity for both homebuyers and developers. Steady borrowing costs help homebuyers plan their finances with greater confidence, while enabling developers to remain focused on project execution and timely delivery. Although global uncertainties and input cost pressures persist, maintaining the current rate cycle could help preserve buyer sentiment and support investment activity, particularly in end-user-driven residential markets."
"The real estate market has demonstrated strong resilience despite global economic uncertainties, and we expect this momentum to continue. An unchanged repo rate can strengthen. For developers, stability in the interest rate cycle is an important enabler as it encourages buyer confidence and supports long-term business planning. Homebuyers today are driven by product quality, location, lifestyle offerings and trust in the developer, with financing being one of several considerations. A stable policy environment will help sustain demand, encourage new project launches and strengthen the overall market."
Anil Godara, Managing Director, J Estates,
"The stability in monetary policy is more valuable than frequent rate changes. We expect the RBI to maintain the repo rate, which would provide continuity for both homebuyers and developers. A stable interest rate gives buyers greater confidence while planning long-term financial commitments and helps sustain momentum in residential sales. With infrastructure-led growth creating new residential hotspots, demand is increasingly being driven by genuine end-users rather than speculative investors. Policy stability will help ensure this positive trend continues in the coming quarters."
