Key Highlights: RBI MPC Holds Repo Rate at 5.25%
- RBI maintains status quo after cumulative 125 bps cuts in 2025, signalling a shift from easing to stability.
- Floating-rate borrowers avoid EMI shocks, with home loan rates starting around 7.10%, aiding long-term financial planning.
- Stable interest rates support buyer confidence, affordability, and steady absorption across residential markets.
- Unchanged borrowing costs enable better project planning, timely execution, and launch visibility.
- RBI’s proposal to allow direct bank lending to REITs is expected to lower financing costs and improve liquidity.
- Rate stability reduces market volatility and supports capital deployment across real estate assets.
- Monetary stability complements infrastructure spending, fiscal support, and regulatory reforms.
- Industry poised to leverage stability for new launches, faster completions, and sustained growth.
In a widely awaited move, the Reserve Bank of India (RBI) concluded its February 2026 Monetary Policy Committee (MPC) meeting by maintaining the repo rate at 5.25%. Following a series of cumulative cuts of 125 basis points over the past year, the central bank’s decision to hit the ‘pause’ button signals a neutral stance, by prioritising stability as the Indian economy navigates a landscape of resilient growth and moderating inflation. The industry generally welcomes this status quo stance.
By holding repo rates steady, the RBI has ensured a crucial safety net for homebuyers. Current homeowners with floating rate loans are spared the ‘EMI shock’ of rising monthly outgoings. It ensures a predictable EMI scenario, providing relief to homebuyers. They also have a clear window to plan long term investments. With home loan rates now currently starting around 7.10%, the status quo ensures that the repo rate cuts achieved during 2025 are not eroded. Stable repo rate also fosters a sustainable growth environment, rather than a volatile one.
Relief for Developers and REITs
Beyond the residential real estate market, the policy brought a significant win: the RBI’s proposal to allow banks to lend directly to the Real Estate Investment Trusts (REITs). This move is expected to reduce borrowing costs for commercial players in the sector. For developers, the unchanged rate environment offers a predictable cost of capital, essential for maintaining the project executions and timely delivery.
What industry experts have to say?
Mr. Manik Malik, CEO, BPTP said, "The RBI’s decision to keep the policy rate unchanged reflects a prudent and well-calibrated response to current macroeconomic conditions. By maintaining a neutral, data-dependent stance, the central bank has reinforced confidence in its commitment to balancing growth with inflation management. This stability in monetary policy has historically supported liquidity and reduced volatility in financial markets. A steady interest-rate environment supports interest-sensitive sectors, improves borrowing visibility, and aids long-term planning. Combined with the government’s focus on infrastructure investment, fiscal support, and regulatory reforms, this approach is expected to strengthen market sentiment. These factors should encourage sustained capital deployment, boost consumer confidence, and support broad-based, sustainable economic growth across key sectors.”
Mr. Yashank Wason, Managing Director, Royal Green Realty, says, "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."
Mr. Rajat Bokolia, CEO, Newstone says , “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.”
Mr. Jitender Yadav, Director, Roots Developers says, "The RBI’s decision to maintain the repo rate at 5.25%, is a catalyst for renewed enthusiasm in the real estate sector. Stable borrowing costs will make home loans more affordable 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."
Mr. Sudeep Bhatt, Director Strategy, Whiteland Corporation says, "The RBI MPC has decided to keep the repo rate unchanged at 5.25%. It comes after RBI’s December 2025 decision to slash repo rate, marking a cumulative cut of 125 basis points throughout 2025. 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."
Mr. Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd., says , “The RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector. This follows the cumulative 125 basis points rate reduction during 2025, which has already supported borrowing sentiment and improved affordability. 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.”
Mr. Manish Agarwal, Managing Director -Satya Group, President -CREDAI Haryana says, "A pause in interest rates should be viewed as an opportunity rather than a constraint. With EMIs likely to remain unchanged, homebuyers can take advantage of financial clarity to optimise loan tenures, reassess repayment strategies and make informed purchase decisions. Over the long term, disciplined financial planning combined with quality housing assets continues to deliver strong lifestyle and investment value”.
Way Forward
The RBI’s decision to maintain the repo rate at 5.25% marks a strategic move. By ensuring stability, the central bank has provided the real estate sector with a much needed predictability. For homebuyers, the pause keeps home loan rates anchored at a stable mark, ensuring aspiring buyers stay within the reach without the looming EMI spikes. For developers, the neutral stance creates a fertile ground for long term capital gains. As the industry moves into the 2026 - 27 fiscal year, the focus will shift towards efficient execution. The real estate industry is well prepared to leverage this period of stability with new launches, purchases, and opportunities.
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