The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% has drawn a broadly positive response from real estate stakeholders, who see the move as a signal of stability amid rising global uncertainties. Industry leaders say the status quo will help maintain predictable borrowing costs, support buyer sentiment, and sustain momentum across residential and commercial segments. However, they caution that rising construction costs, affordability pressures, and geopolitical risks could weigh on demand in the coming quarters, making it critical for developers and policymakers to navigate a more complex operating environment.

Lata Pillai, Senior Managing Director and Head – Capital Markets, India, JLL: “The RBI’s decision to hold the repo rate steady at 5.25% for the second successive time comes in the wake of geopolitical headwinds which have clouded growth outlook prospects. While global uncertainties have increased, the repo rate stability provides an insight into the RBI’s confidence in India weathering the storm in a calibrated manner and keeping its growth journey intact. The current approach also works well in the current instance of managing growth along with the twin focus of inflation and currency management. This will maintain stability in borrowing costs while aiding consumer spending as well as provide a more certain environment for business.

The current policy stance will continue to act as support to the prevailing momentum in the real estate market. We expect increases in construction costs due to rising energy prices and supply chain disruptions. In such a scenario, a stable interest rate environment with previous rate cut transmissions still cycling through will lend stability to the residential markets. The current sluggishness in residential sales in the first quarter of 2026 is already a signal that rising prices are beginning to hit affordability and uncertainty is affecting buying decisions. We will keep a close watch on the coming quarters as market participants will have to come together to navigate these uncertain times to ensure momentum remains intact and is restored going forward.”

Shrinivas Rao, FRICS, CEO, Vestian: “The decision to keep the repo rate unchanged for an extended period comes as a welcome relief. It is likely to keep mortgage rates steady and competitive at a time when construction costs remain elevated due to the ongoing West Asia crisis. This move could help cushion the impact of rising input costs on demand and allow stakeholders to recalibrate their strategies in response to evolving market dynamics. However, this may be the RBI’s final status quo before the repo rate begins its upward trajectory.”

Vimal Nadar, National Director & Head, Research, Colliers India: “RBI has kept the repo rate unchanged at 5.25% in its first MPC meeting of the fiscal year. This along with the continuation of neutral stance reflects a ‘wait-and-watch’ approach amid ongoing West Asia crisis and its fallout on commodity & fuel prices and supply chain disruptions as well. Although inflation levels have inched up in recent times driven by crude price volatilities, it remains relatively contained, with a projection of 4.6% for FY 2026-27. Simultaneously, on the growth front, the GDP is forecasted to grow at 6.9%.

While the outlook for overall real estate remains positive at this juncture, the likely impact of supply chain shocks and the resultant rise in construction materials can slow down ongoing and future construction activities. The intensity & duration of the ongoing crisis will have a significant bearing on consumption patterns including retail, hospitality and housing demand especially in the affordable & mid income segments. At the same, the fundamentals of the Indian economy remain strong and will provide a cushion for the real estate sector to remain resilient in the medium term.”

Piyush Bothra, Co-Founder and CFO, Square Yards: “The current update on repo rates brings much-needed predictability for homebuyers and the real estate sector. With borrowing costs holding steady, demand, particularly in the mid-income and premium segments, is expected to remain resilient in the near term. This stability in interest rates also supports buyer sentiment and allows developers and lenders to plan with greater confidence. However, the RBI’s cautious tone suggests that stakeholders should remain prepared for potential shifts as inflation and global uncertainties continue to evolve. Any movement in rates going forward will be closely linked to external factors, and both homebuyers and industry players should stay mindful of changing macroeconomic conditions while making long-term decisions.”

Manish Agarwal, MD-Satya Group & President CREDAI – Haryana: “Stability, when intentional, is a policy signal in itself. The Reserve Bank of India’s decision to hold rates reflects a balanced, forward-looking approach, prioritising long-term resilience over short-term shifts. For residential real estate, this is timely, as sustained end-user demand across mid-income and premium segments continues to drive a consumption-led cycle. A stable rate regime keeps home loan EMIs predictable, supporting buyer confidence and purchase decisions, while enabling better planning for developers and ensuring steady momentum across the sector.”

Vijay Ram Rattan, Chairman, Ram Rattan Group, “The Reserve Bank of India’s decision to keep rates unchanged reflects a balanced and prudent approach amid global uncertainties. For the real estate sector, this policy continuity reinforces buyer confidence and ensures stability in borrowing costs, supporting steady end-user demand. At this stage, predictability matters more than rate movement, and the RBI’s stance provides the right environment to sustain healthy momentum across the sector.”

Aman Sharma, Managing Director & Founder, Aarize Group: “We welcome the RBI’s decision to keep the repo rate at 5.25%. This comes as a reassuring move, especially at a time when the global economy is under stress, highlighting the strength and stability of the domestic economic outlook. It will be a positive sign for the real estate sector as it will facilitate a supportive environment for the positive momentum going forward. It will also send a positive signal for investors, thus facilitating market confidence. For buyers it would be a lot of certainty in the buying of homes that would generate the promise of value in the longer run. Additionally, stable repo rates will help to keep home loan interest rates steady, improving affordability and encouraging more buyers to take purchase decisions with greater confidence. A consistent rate environment will help maintain growth traction, encourage disciplined investments and support the sector’s evolution in a more resilient and sustainable manner.”

Ashish Agarwal, Director, AU Real Estate: “We welcome the RBI’s decision to keep the repo rate unchanged. The decision will help sustain momentum in the real estate sector. Rate stability is an important element in building the buyer’s confidence. This will ensure that buyers are making a more structured decision process for purchases. Although it will provide a steady demand to the housing market, it will definitely build the buyer’s confidence in premium properties where the buyer is aligned to long-term value and quality. A consistent rate environment will help to maintain growth traction, encourage disciplined.”

Anil Godara, Founder and Managing Director, J Estates: “We welcome the RBI’s decision to maintain the repo rate at 5.25%. This calibration would be significantly encouraging for the real estate and senior living segment for enhancing the viability of spaces that provide the ecosystem of residential living integrated with healthcare and wellness infrastructure. It will also have a rippling effect on the investor sentiment, characterized by strengthened investor confidence. Additionally, the calibration will also induce steady expansion of professionally managed real estate communities across key markets.”

Vishal Datt Wadhwa, Founder & CEO, CoWorkZen: “Holding rates was the right call. The environment doesn’t allow anything else — oil above a hundred dollars, the rupee under pressure, inflation building in the pipeline from sources monetary policy simply cannot address. For enterprises evaluating workspace decisions — GCC buildouts, regional expansion, flex footprint across IT-ITES corridors — what matters is not the rate itself but the signal. A disciplined central bank that refuses to overreact to a supply shock is one that corporates can plan around. Lease decisions in structured commercial spaces are made on 3–5 year conviction, not monthly rate movements. Today’s policy does nothing to disrupt the conviction.”

Mohit Mittal, CEO, MORES: “The rate pause reflects the RBI’s caution, but for the real estate sector, monetary policy is only one piece of the puzzle. The bigger issue is affordability across mid and affordable housing segments, which remain squeezed between stagnant wage growth and rising construction costs. The industry should use this period of policy stability to push for streamlined approvals, RERA enforcement, and better infrastructure investment in Tier 2 cities — that’s where India’s next real estate growth story is being written. Interest rates will eventually move; what the sector builds in the interim will determine who leads the next cycle.”