The Reserve Bank of India's decision to keep the benchmark repo rate unchanged at 5.25% has received a positive response from the real estate industry. Developers, consultants, and industry leaders believe that policy continuity will provide stability in borrowing costs, strengthen buyer confidence, and support sustained housing demand amid global economic uncertainties.
Industry stakeholders noted that a stable interest rate environment offers greater predictability for homebuyers, developers, and investors alike. With borrowing costs remaining steady, developers can plan project execution and investments more effectively, while homebuyers benefit from improved financial planning and stable EMIs. Many also highlighted that the RBI's upward revision of India's FY27 GDP growth forecast to 6.7% reinforces confidence in the country's economic resilience and is expected to further support long-term growth in the housing sector.
Industry Expert Opinions
Mr. Yateesh Wahaal, Director, M3M India
"The RBI’s decision to keep the repo rate unchanged at 5.25% provides much-needed stability to the real estate sector, particularly amid an evolving global economic landscape. The move is expected to support buyer confidence by ensuring greater predictability in home loan interest rates, thereby sustaining end-user demand. A stable interest rate environment also enables developers to plan investments and project execution with greater certainty. As the housing market continues to witness healthy demand, this policy continuity will help maintain positive market sentiment and support the sector’s steady growth trajectory."
Mr. Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited
"The RBI's decision to maintain the repo rate at 5.25% reflects a balanced approach towards supporting economic growth while remaining vigilant on inflationary pressures. For the residential real estate sector, policy stability is often more valuable than frequent rate movements, as it provides confidence to homebuyers, investors and developers alike.
For homebuyers, a stable interest rate environment preserves affordability and enables long-term financial planning without concerns of rising EMI obligations. Developers benefit from greater predictability in capital allocation and project execution, while investors gain confidence from a stable macroeconomic backdrop and sustained demand fundamentals.
The housing market has continued to demonstrate resilience, driven by strong end-user demand and rising aspirations for homeownership. With borrowing costs remaining stable and demand momentum intact, we expect the sector to maintain its growth trajectory across key residential markets."
Mr. Deepak, Sangwan, Chairman, Origen Realty
"The MPC’s decision to keep the repo rate unchanged at 5.25% is indicative of a measured approach which will impact the real estate sector positively. For homebuyers, the stability in repo rate will translate to manageable home loan costs and conviction in buying decisions. For developers, the unchanged repo rate will reinforce disciplined execution of ongoing and pipeline projects. Investors are also set to benefit from a stable environment that consolidates real estate’s positioning as a dependable, non volatile , long term asset. At a broader level, the stability in the repo rate will provide the policy continuity required to maintain the momentum of India's housing demand cycle and support its ongoing demand-led expansion".
Mr Amit Goyal, Managing Director, India Sotheby’s International Realty
“This is the fourth consecutive RBI policy with the repo rate unchanged at 5.25%, and we welcome the decision. Despite higher crude prices and June retail inflation rising to an 18-month high, the RBI has prioritised stability. It reflects confidence in the resilience of the Indian economy, while remaining watchful of global risks.
For real estate, the timing is significant. This is the last policy review before the festive season, giving homebuyers and developers greater certainty to plan purchases and launches. Stable EMIs are particularly important as some overheated markets begin to see demand moderate. We expect this unchanged interest rates, together with easing crude prices, to support buyer sentiment and help sustain housing demand through the festive season.”
Mr Vimal Nadar, National Director & Head of Research, Colliers India
“RBI has kept the repo rate unchanged at 5.25% along with continuation of neutral stance, reflecting a vigilant approach amid the resurgence of West Asia crisis, volatile crude prices, fluctuating rupee and persistent inflationary risks. Although trade uncertainty, tariff rate recalibrations & renewed supply chain disruptions could weigh on growth prospects and affect multiple economic sectors, Indian real estate holds potential to navigate the downside risks successfully.
Additionally, stability in interest rates continue to provide comfort to homebuyers, especially in the affordable and middle-income segments. With the upcoming festive season, stability in EMIs could boost housing demand in the next few quarters. However, affordability pressures stemming from rising construction and labour costs may moderate sales as compared to the previous year. Developers, meanwhile, are likely to remain focused on cost management and timely project deliveries. Moreover, the recent RERA advisory to grant a four-month extension to eligible projects impacted by the West Asia conflict, provides a much-needed regulatory relief to affected developers.”
Mr Shrinivas Rao, FRICS, CEO, Vestian
“The RBI's decision to keep the repo rate unchanged at 5.25% depicts its balanced approach amid prevailing geopolitical uncertainty, an uneven monsoon, and rising domestic inflation. The stable monetary policy is expected to support capital inflows into the real estate sector at a time when developers continue to grapple with elevated construction costs and softer foreign investment sentiment due to the West Asia conflict. The current mortgage rates may offer a limited window for prospective homebuyers before any potential policy tightening. If crude oil prices and inflationary pressures intensify in the coming months, the RBI may consider a 25-basis point rate hike in its next MPC meeting.”
Mr Akhil Saraf, Founder & CEO, Reloy (A proptech Firm)
“The RBI’s decision to keep the repo rate unchanged at 5.25% brings much-needed stability to the real estate sector. In today’s market, predictability is just as valuable as lower interest rates. For homebuyers, it means greater confidence in planning their finances and making purchase decisions, while for developers, it provides the certainty needed to plan investments and execute projects efficiently. Although a rate cut would have provided an additional boost to housing demand, maintaining the current rate strikes the right balance between supporting economic growth and keeping inflation in check. Overall, this policy continuity is expected to sustain positive sentiment across the residential real estate market.”
Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd.
“The RBI's decision to maintain the repo rate at 5.25% reflects a prudent and balanced approach at a time when the global economy continues to face geopolitical uncertainties and external headwinds. With inflation remaining within the central bank's comfort range, policy stability provides much-needed confidence to both businesses and homebuyers. The residential real estate sector has witnessed healthy demand in recent quarters, supported by stable borrowing costs and improving consumer sentiment.
Continuing with the current rate environment will help sustain housing demand, encourage homeownership, and enable developers to maintain project execution and new launches without disruption. Going forward, a stable monetary policy, coupled with strong economic fundamentals, is expected to support the sector's long-term growth trajectory. “
Mr. Vikas Bhasin, Managing Director, Saya Group
“The Reserve Bank of India (RBI) has once again kept the benchmark repo rate unchanged at 5.25%, with the last revision having taken place in December 2025. A stable interest rate environment is positive for the real estate sector as it provides confidence and certainty to prospective homebuyers planning to finance their purchase through a home loan. Stability in borrowing costs enables buyers to plan their finances better and make long-term investment decisions without concerns over rising EMIs.
Besides stability, home loans are currently available at attractive interest rates of around 7.25%, making homeownership more affordable than it has been in recent years. With the festive season approaching, several developers, including Saya Group, are offering attractive schemes, exclusive discounts, and flexible payment plans on ready-to-move-in or nearing possession properties with strong long-term value. Combined with stable borrowing costs and festive incentives, this presents an opportune time for homebuyers to make their purchase decision, particularly for those looking at ready-to-move-in or under-construction properties with strong long-term value. “
Mr. Sapan Gupta, Chief Financial Officer, Rodic Consultants
"The RBI's decision to keep the repo rate unchanged reflects a balanced and forward-looking approach to supporting economic growth while maintaining macroeconomic stability. Coupled with the phased reduction in the Cash Reserve Ratio (CRR), which is expected to enhance systemic liquidity and improve credit availability, the policy provides a positive impetus for capital-intensive sectors such as infrastructure and construction.
As India continues to advance its infrastructure agenda amid global uncertainties, a stable financing environment will facilitate faster project execution, encourage greater private sector participation, and support sustained long-term growth. At Rodic Consultants, we believe these measures will strengthen confidence across the infrastructure ecosystem, enhance investment sentiment, and contribute to India's vision of building a resilient, self-reliant, and globally competitive economy."
Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited
“The RBI's decision to keep the repo rate unchanged at 5.25% reinforces stability and predictability in the housing market. Attractive home loan rates already being offered by commercial banks have significantly improved affordability, encouraging first-time homebuyers to take purchase decisions with greater confidence. This stable interest rate environment, coupled with healthy financing options, is expected to sustain demand, particularly in the mid-income housing segment, where genuine end-user demand remains strong. We believe policy continuity will further strengthen buyer sentiment, support housing sales, and provide a positive outlook for the residential real estate sector in the coming months."
Mr. Shekhar Patel, President, CREDAI
"The RBI's decision to maintain the repo rate at 5.25% provides much-needed stability and reassurance for the real estate sector. Given the prevailing global uncertainties, maintaining the status quo sends a positive signal of confidence and policy continuity. Real estate is a long-gestation sector, and homebuyers make long-term financial commitments. A stable interest-rate environment enables both developers and buyers to plan with greater certainty. The RBI's upward revision of India's GDP growth projection to 6.7% underscores the resilience of the Indian economy despite external headwinds. Sustained economic growth, employment generation and continued infrastructure development remain the strongest drivers of housing demand. Despite supply-side disruptions in recent months due to the situation in West Asia, the housing market has continued to demonstrate remarkable resilience, reflecting strong underlying demand. Stable borrowing costs further support this momentum by providing financing certainty and facilitating timely project execution. Going forward, continued investment in infrastructure, coupled with stronger policy support for affordable housing, will further strengthen the sector's long-term growth trajectory. Policy stability instils confidence across the housing ecosystem and is particularly significant for an industry where investment and homeownership decisions are made with a long-term perspective."
Industry leaders broadly agree that maintaining the current repo rate will help sustain positive market sentiment across residential real estate, particularly as the festive season approaches. Stable financing conditions, coupled with healthy end-user demand and ongoing infrastructure development, are expected to support housing sales, project launches, and long-term investments. While some experts cautioned about inflationary pressures, rising construction costs, and global geopolitical risks, the overall industry outlook remains optimistic, with policy stability seen as a key factor in maintaining growth momentum across the real estate sector.
Miss Reeza Sebastian Karimpanal, CRO, Residential, Embassy Developments Ltd.
“With the RBI opting to hold rates steady in its August review, the real estate sector gets another quarter of policy predictability to work with. It provides a meaningful anchor given the crosscurrents in global growth and inflation. On the ground, we are seeing that homebuyers today are looking well beyond the interest rate cycle; the real decision drivers are quality, community design, and the long-term value a project can hold.
This is especially true in the premium and luxury segments, where buyers are anchored more by conviction in India's growth trajectory and real estate as a wealth-preserving asset than by monthly EMI math. Continuity in policy only strengthens that conviction, giving both developers and buyers the confidence to plan further out rather than react to short-term rate signals. This dynamic should keep the residential market on a steady footing through the rest of the year”.
Rahul Rajendran, Principal - Investments, WSB Partners
"The RBI's decision to hold the repo rate at 5.25% for a fourth consecutive meeting brings welcome stability to the real estate financing landscape. Stable interest rates continue to support housing demand and developer confidence, creating a more predictable environment for underwriting, project absorption, timely execution, construction finance, and last-mile funding. As a real estate-focused AIF, we view this policy continuity as positive for disciplined capital deployment, allowing us to stay focused on asset selection and structuring rather than reacting to rate volatility. While a rate cut could have provided an additional boost to homebuyer sentiment, developer cash flows, and lower financing costs, the current stance reinforces confidence in the sector as we continue to monitor the RBI's future rate trajectory."
Mr Sudarshan Lodha, CEO and Co-Founder of Strata
"The RBI’s decision is an encouraging signal for developers, investors and capital providers, offering greater visibility at a time when certainty around the cost of capital is particularly valuable. With rates holding steady and the growth outlook strengthening, the sector can plan funding, construction timelines and capital deployment with greater confidence.
For real estate, this stability creates a strong platform for the next phase of growth. Capital can be directed towards projects with strong market absorption, credible developers, clear execution milestones, and visible cash flows. This is an opportunity for the sector to accelerate execution, support well-positioned projects and convert a favourable policy environment into sustainable, long-term value."
