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"
