The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% reflects a calibrated “wait-and-watch” approach at a time when global economic uncertainty, geopolitical tensions, and inflationary pressures continue to shape macroeconomic conditions. While the central bank maintained a neutral stance and signalled confidence in India’s growth trajectory with an upward revision in near-term GDP projections, the move has been largely welcomed by the real estate sector.

RBI holding the repo rate at 5.25% ensures stability for real estate, keeping borrowing costs steady and supporting housing demand despite ongoing global uncertainties

Developers believe that stable borrowing costs and policy continuity will help sustain end-user demand, support project viability, and provide much-needed visibility for both residential and commercial segments, even as expectations of a future rate cut remain intact.

Deepak Kapoor, Director, Gulshan Group, says, “In the backdrop of global volatility and inflationary pressures driven by high energy prices, the RBI’s move to hold the repo rate steady at 5.25% reinforces confidence in India’s economic resilience. The upward revision in near-term GDP projections further strengthens this outlook. For real estate, stable borrowing costs and policy continuity create a conducive environment for sustained demand, and we remain optimistic about steady growth across residential segments through the year.”

Prateek Tiwari, Managing Director, Prateek Group, says, “The RBI’s decision to keep the repo rate unchanged at 5.25% is a balanced approach against a backdrop of global economic uncertainties and geopolitical pressures. For the housing sector, the consistent rate helps strengthen sentiment, reassuring buyers and keeping financing conditions stable. This plays a key role in home buyers’ purchasing decisions, particularly for first-time buyers and end-users exploring opportunities in strong demand corridors.”

Sahil Agarwal, CEO, Nimbus Group, says, “The central bank’s neutral stance reflects a calibrated and forward-looking approach to managing inflationary pressures and uncertainty. This continuity in borrowing costs boosts confidence, supports end-user demand, and strengthens project viability. We believe this will encourage sustained investment and reinforce positive momentum across the sector.”

Amit Modi, Director, County Group, says, “A marginal rate cut at this juncture would have offered meaningful relief to homebuyers, especially first-time borrowers managing stretched affordability in key urban markets. For the sector, this is a phase of resilience rather than acceleration, where confidence matters as much as the cost of capital.”

Sanchit Bhutani, Managing Director, Group 108, says, “A steady repo rate combined with a neutral policy stance bodes well for the commercial real estate sector. It provides greater visibility on borrowing costs, fostering confidence among developers, investors, and occupiers alike. For developers, this stability enables more predictable project planning and efficient liquidity management.”

Moreover, amid escalating geopolitical tensions in the Middle East and the resulting risks of imported inflation, the RBI’s decision to hold the repo rate has resonated positively with the real estate sector.

Sanjay Sharma, Director, SKA Group, says, “Maintaining the repo rate at 5.25% reflects a clear “wait and watch” approach from the RBI amid global uncertainty. For real estate, this brings stable but subdued financing conditions. While developers would have welcomed a rate cut to further unlock demand momentum, especially in the affordable and mid-housing categories, the current geopolitical backdrop is keeping inflation risks elevated.”

Tejpreet Gill, Managing Director, Gillco Group, says, “The RBI’s decision to maintain the repo rate at 5.25% with a neutral stance underscores policy stability at a time of global uncertainty and inflationary concerns. For the real estate sector, stable interest rates enable long-term planning and execution, while supporting sustained traction across residential and commercial projects.”

Nitin Shrivastava, Managing Partner, Big FM Realty, says, “Stability in policy matters more than aggressive interventions. The RBI’s decision to keep the repo rate at 5.25% comes as a reassuring signal, especially for the housing sector. For homebuyers, it means EMIs remain predictable, making it easier to plan purchases with confidence. For developers, it supports pricing discipline and allows supply to be introduced in a more measured way.”

Udit Jain, Director, One Group, says, “The unchanged repo rate strengthens the outlook for housing in Tier 2 cities, where markets are still evolving and respond sharply to interest rate signals. In these regions, buyers tend to be more cautious and value clarity over short-term incentives, and stable home loan rates help build that confidence. For developers, it creates a more predictable demand environment, where launches can be planned with greater alignment to actual absorption.”

Piyush Kansal, Executive Director, Royale Estate Group, says, “Despite near-term inflationary pressures driven by global factors, the current rate environment ensures predictable borrowing costs. This will encourage end-users to make purchase decisions, supporting steady demand across emerging cities.”

Ajendra Singh, Vice-President – Sales & Marketing, Spectrum Metro, says, “RBI’s keeping repo rate stable comes as a positive step for the retail segment, where consumption and expansion plans are closely linked to borrowing conditions. With interest rates holding steady, retailers and brands get better visibility on financing costs, while developers can have more structured planning of retail assets and tenant mix. In a broader sense, a predictable rate environment supports steady leasing activity and healthier occupancies across organised retail spaces.”