With the RBI's next Monetary Policy announcement coming soon, the real estate industry is extremely keen on the central bank's stance on interest rates. Most market participants anticipate that the RBI will adopt a cautious approach by managing inflation and supporting the economy simultaneously.
The real estate sector has energized its sales activities in 2025, backed by good liquidity and positive buyer sentiment, particularly in the mid-income and affordable housing segments. Under such circumstances, policy continuity is regarded as the main factor to keep the energy going.
Developers, lenders, and homebuyers are of the same opinion in expecting stability, and most of them, are anticipating a few indications of a gentle easing in the near future. A fixed or lower interest rate environment would facilitate EMIs, make project financing cheaper, and entice new investments.
As a result of several high-frequency indicators pointing to strong economic activity and controlled inflation, the real estate community is upbeat that the next policy will be a consolidation of confidence and a continuation of the sector's growth trajectory.
Real Estate Industry Expectations
The real estate sector is anxiously awaiting the review of the monetary policy of the Reserve Bank of India. They expect a status quo to be maintained, which will be beneficial to both buyers and developers. Stability in the cost of borrowing has, in fact, been instrumental in maintaining the demand, especially in the segments of housing for the mid-income and the economically weaker sections. Industry players are of the opinion that the announcement of rates gives the market the trust it needs to continue with the execution of projects and the launching of new ones.
Mr. Shiv Garg, Director at Forteasia Realty, observed that the RBI’s decision to maintain the repo rate at signals strong stability in the sector. “The Reserve Bank of India’s decision to maintain the repo rate at 5.50% is signaling a very strong stability to the real estate market. The consistency in monetary policy truly supports housing loans at low rates, thus encouraging the entry of first-time buyers and middle-income families into property ownership. Developers are also aided by financing that is less strict, thus speeding up the sector’s growth through project completions and new launches. The rate stability is perceived positively and the growth could be sustained through 2025“ he said.
Similarly, Anurag Goel, Director of Goel Ganga Developments, highlighted how rate continuity has eased uncertainties in project timelines. “The maintenance of the repo rate has granted real estate developers the opportunity to operate project timelines with lesser uncertainties. The narrowing of the cost on loans granted by the banks means that it is easier to obtain mortgages, thereby gradually raising the confidence of buyers especially in the mid-income and affordable segments. This condition is conducive to investments and the sales of inventories, which are the things to be done for the sector’s revival in Tier 1 and Tier 2 cities“ he noted.
Developers also see a positive impact from improved liquidity. Pramod Kumar Gupta of Kadamashree Developers India LLP explained,“The RBI’s choice of not raising the repo rate in a market that is highly dependent on interest rates to be sure both the buyers and the developers. Real estate transactions are mostly supported by an increase in liquidity and reduction in loan costs, especially in the mid-income and affordable housing sectors that are likely to recover soon, thus, indicating that the market is getting better.“
Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara, emphasized that lower financing costs are supporting housing demand. “Developers welcome the RBI’s steady repo stance as it lowers project financing costs and facilitates smoother fund flow. Cheaper home loans and sustained growth indicators together will likely spur housing demand, aiding recovery in unsold inventory and boosting new construction momentum,” he said.
Looking ahead, Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, anticipates a potential rate cut in the next policy review, noting that the current environment is conducive to easing.“We expect the Monetary Policy Committee to announce a 25 basis points rate cut in the upcoming policy review. With inflation steadily moving within the RBI’s comfort range and multiple high-frequency indicators pointing towards a gradual economic softening, the environment is now conducive for a calibrated easing. A rate cut at this juncture would provide meaningful relief to borrowers—particularly those servicing big-ticket loans such as home loans and auto loans. It would help lower the overall cost of credit and, in turn, stimulate demand across key consumption-driven and investment-led sectors of the economy. Also, a measured rate cut will signal confidence in the economic outlook while supporting growth momentum. As a leading loan distribution company, Andromeda believes that easing rates will strengthen credit flows, encourage capital formation, and contribute to a more robust and broad-based economic recovery", he said.
Rajjath Goel, Managing Director, MRG Group, said, "The current economic resilience has brought the sector to an interesting juncture. A pause in December is understandable, but the underlying indicators, especially easing inflation and liquidity stability, suggest that policymakers are inching closer to an accommodative cycle. For Gurugram’s luxury housing, even a 25-basis-point cut can meaningfully lift the sentiment of buyers and investors who are actively reallocating wealth into real estate. A softer repo environment in early 2026 would further deepen the momentum we’re witnessing, accelerating absorption in marquee projects and reinforcing luxury housing as a long-term wealth creation asset".
Industry observers agree that Gurugram’s high-end housing market has shown exceptional resilience this year, with investor activity rising steadily. A future rate cut, even if marginal, is expected to unlock additional demand from ultra-HNI and NRI buyers who view luxury real estate as a stable, inflation-protected asset.
Harvinder Singh Sikka, Chairman Sikka Group, says, "As the RBI gears up to announce the policy tomorrow, the industry is keenly watching. Keeping the repo rate unchanged or changing it, the efforts would be aimed at a delicate balance between containing inflation and furthering economic growth. As far as real estate is concerned, both situations bring different sets of implications: stable rates keep affordability intact, while any calibrated change would reflect broader economic priorities. At Sikka Group, we believe clarity from the central bank helps buyers and developers plan with confidence, and we look forward to the guidance the RBI will offer."
His stance reflects the broader sentiment of the NCR real estate fraternity, which believes that policy visibility—whether a hold or a change—provides a critical foundation for planning launches, pricing strategies, and financing decisions over the next two quarters.
Yash Miglani, Managing Director, Migsun Group, says, "The review of the repo rate tomorrow is expected to be either a hold or a calibrated move as per the signals emanating from economic indicators. Both situations have their impact—the continuance of rates as before keeps demand stable, whereas any adjustment indicates how the central bank would look to control inflation and liquidity. We consider this policy update to be a relevant framework in the context of market sentiments, and we are ready to gear up accordingly in either direction that RBI might consider fitting at this juncture."
This readiness highlights developers’ evolving approach: preparing for multiple policy outcomes, ensuring flexibility in execution, and aligning project delivery timelines with anticipated shifts in consumer sentiment.
Sanjay Sharma, Director, SKA Group, says, "Given the current macroeconomic scenario reflecting strong GDP growth, controlled inflation, and stable buyer sentiment, the sector anticipates the December policy to either be slightly reduced or be a finely balanced call. Even if the MPC maintains the status quo, we expect the benign inflation trend to create room for a rate cut early next year. For Noida–Greater Noida & Ghaziabad, where end-user driven demand is bringing a surge in luxury homes, even a marginal reduction in home-loan rates can unlock a new wave of affordability. Developers are preparing for a more upbeat first quarter, with fence-sitters likely to convert once borrowing costs begin softening sustainably."
Market dynamics in these micro-markets already indicate heightened traction among genuine homebuyers, and experts anticipate that any easing of borrowing costs will accelerate conversions, particularly in premium and newly launched developments.
Ashok Singh Jaunapuriya, MD & CEO, SS Group, says, "With economists indicating that December will most likely be a status-quo policy, the industry must prepare for stability rather than immediate relief. Gurugram’s premium housing markets are demonstrating strong absorption despite unchanged rates, showing that the sector has matured. While a rate cut would certainly improve sentiment, buyers in the city today are taking long-term calls based on asset value, not short-term fluctuations. Our view is that once inflation remains anchored for a few more months, the RBI will have the comfort to ease rates. Until then, the stability itself supports healthy, sustained growth."
In general, the real estate market aims to benefit from the continuously low borrowing costs coupled with the improving liquidity situation. The market will thus remain solid and attract investors. This circumstance will support project execution, encourage new launches, and increase buyer interest, especially in mid-income and affordable segments
Way Forward
A steady repo rate by the RBI and the chance of a calibrated easing are seen by the real estate sector as the main factors which would lead to a revival of market confidence. Reduced loan rates, better cash flow in the market, and growing consumer confidence—especially in the middle-income and affordable segments—will gradually ease the execution of stalled projects and lead to a rise in new launches. The sector will be able to maintain its sales cycles at full strength and enjoy a strong recovery up to 2025 as a result of these factors coming together
.png)