Despite the significant downward revision in its inflation forecasts, the Reserve Bank of India – as widely expected — kept the repo rate unchanged at 5.5% in its August MPC meet on Wednesday. While a neutral stance indicates limited scope for further easing, the RBI governor hinted that future action would be dependent on how growth performs – therefore, not closing the door on further rate cuts completely in the post- policy press conference.

“Stability in monetary policy augurs well for homebuyers and real estate developers, particularly in the affordable and mid-income segments. The lowering of interest rates in the recent past is expected to be fully passed on to the end users in upcoming quarters, who are likely to benefit from reduced financing costs,” said Vimal Nadar, National Director and Head of Research, Colliers India, commenting on the RBI decision.

With the festive season approaching, developers can further capitalize on this momentum with timely project completions, new launches and festive offers & discounts. “Overall, the cautious yet growth-supportive monetary policy is likely to strengthen demand across real estate segments in the second half of 2025,” he added.

Here’s what India’s leading real estate consultants and developers said about the RBI decision to keep the repo rate unchanged:

Anuj Puri, Chairman, ANAROCK Group: “The RBI has decided to keep the repo raDr. Samantak Das, Chief tes unchanged at 5.5%, also taking cognizance of the ongoing tariff uncertainties and the possible impact on the Indian economy. A rate cut leading to lower interest rate environment would have particularly boosted the affordable housing segment, which has been under considerable pressure in recent years. ANAROCK data shows that average residential prices across the top 7 cities combined have increased by 39% in the last two years alone – from INR 6,470 per sq. ft. as of Q2 2023 to INR 8,990 per sq. ft. as of Q2 2025. The affordable housing segment’s fate may be further dampened by the ongoing global trade tensions and tariffs imposed by the Trump administration. This is largely because of its impact on the MSMEs – the key target audience of the affordable segment. That said, overall, homebuyers are currently driven by long-term confidence rather than short-term rate fluctuations. Given the upcoming festive season, developers may look to keep the market momentum going with offers and flexible payment plans, which may help improve affordability for many genuine buyers.”

Dr. Samantak Das, Chief Economist and Head – Research and REIS, India, JLL: “While a rate cut would have been favourable for the real estate sector, further boosting home buyer sentiment in conjunction with the festive season and reducing borrowing costs, the status quo is not expected to negatively impact the market’s current momentum. Inflation is seasonal in nature and is expected to reduce in the next quarter suggesting potential for future rate cuts. If implemented, these cuts could invigorate both the real estate sector and the wider economy, improving housing affordability and likely accelerating market dynamics. The residential real estate sector has adapted to the prevailing interest rate environment and continues to show robust performance with sales in the first nine months of 2024 already at 2.3 lakh homes, representing 85% of 2023 full year numbers. With the festive season coinciding with the fourth quarter and housing demand expected to remain strong, JLL expects sales for the Oct-Dec 2024 quarter to potentially match or exceed the trailing three-quarter average of over 75,000 units, taking the full year sales to ~305,000 units. This would mark a record year with the sales realization value expected to touch INR 510,000 crore for full year 2024.”

Shishir Baijal, Chairman and Managing Director, Knight Frank India: “For the real estate sector, the continuation of stable policy rates and surplus liquidity conditions provide much-needed predictability and helps preserve affordability for homebuyers. Notably, some banks have already reduced consumer home loan rates – a move that supports housing demand, especially in the mid-income and low-income segment – and more transmission in interest rates is underway. This policy continuity, coupled with easing credit conditions and steady economic growth can provide a boost to the affordable housing categories.”

Amit Goyal, MD, India Sotheby’s International Realty: “The RBI’s neutral policy stance, coupled with a 6.5% GDP growth outlook and a softer inflation trajectory, reflects a steady macroeconomic confidence. Strong consumption and stable urban demand are already supporting India’s housing sentiment. With home loan rates easing with 3 previous repo rate cuts in 2025, we believe the momentum in home buying will remain cautiously positive—much like the RBI’s approach, balancing domestic resilience with global uncertainties.”

Shekhar Patel, President, CREDAI: “The earlier rate cuts played a pivotal role in sustaining strong demand within the housing sector. In the first half of 2025 alone, residential property sales across Tier-I cities touched ₹3.6 lakh crore, underscoring the sector’s resilience and growing consumer confidence. A modest rate reduction at this juncture could have further accelerated this momentum, encouraging more prospective homebuyers, especially in the affordable and mid-income segments. Looking ahead, CREDAI anticipates a potential rate cut during the upcoming festive season. Such a move would provide a timely boost to housing demand, particularly for first-time buyers and those seeking budget-friendly homes—thereby supporting broader economic growth and employment generation through the real estate and allied sectors.”

Piyush Bothra, Co-Founder and CFO, Square Yards: “The decision to maintain the repo rate at its current level reflects a ‘watchful waiting’ approach amidst a mixed economic landscape. For the residential sector, a further cut would have been a welcome festive bonus for homebuyers. This stability ensures that borrowing costs remain manageable and avoids any sudden shocks to the market. The onus now squarely falls on the banks to enhance the transmission of previous rate cuts, ensuring that the benefits of lower interest rates are fully passed on to homebuyers.”

Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group: “Stability in interest rates offers clarity for both developers and homebuyers, enabling structured planning and decision-making. A pause in further rate cuts also allows banks to ensure the complete transmission of the previous 100 bps reduction, a critical step in providing tangible relief to end consumers. This full transmission will enhance home loan affordability, supporting sustained housing demand. While the stable monetary approach reinforces confidence, a marginal rate cut at this juncture could have further reduced borrowing costs, adding fresh momentum to residential sales amidst strong buyer and investor sentiment. Such a move could have amplified the sector’s contribution to economic recovery.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: “The RBI’s decision to maintain the repo rate at its current level reflects a steady approach to supporting economic recovery amid stable inflation. With borrowing costs significantly reduced following three consecutive rate cuts, the current policy stance ensures continued affordability, as rates remain at comfortable levels. This is expected to sustain consumer confidence and support ongoing momentum in key sectors, including real estate. The unchanged policy stance is set to keep the real estate sector’s growth momentum on track. With steady interest rates and strong consumer confidence, developers are expected to meet the sustained demand for quality housing through greater focus on new offerings. This sustained activity will further strengthen the real estate sector’s contribution to GDP growth, job creation, and the expansion of urban infrastructure in the coming quarters.”

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation: “With the festive season approaching, stable interest rates and the continued transmission of past rate cuts are expected to keep housing demand buoyant—particularly in the mid and premium segments. Backed by a positive buyer outlook and attractive developer offerings, market sentiment remains strong, and we anticipate steady sales momentum in the months ahead.”

Sushil Bedarwal, CMD, Bedarwal Group: “The RBI’s decision to pause the ongoing rate cut cycle is in line with the prevailing economic indicators and the current geopolitical environment. It is also important to note that the market is still in the process of fully absorbing the impact of the last three consecutive rate cuts, which together amounted to a significant 100 basis points reduction. The benefits of these cuts are expected to gradually reflect in improved credit offtake and increased consumer spending, particularly in the retail and housing sectors.”

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd: “As anticipated, the Reserve Bank of India (RBI) has kept the repo rate unchanged, despite favourable factors such as a good monsoon and inflation remaining well below the comfort level. The decision appears to be guided by ongoing geopolitical uncertainties and unresolved global tariff concerns. However, the cumulative 100 basis points cut over the last three Monetary Policy Committee (MPC) meetings has already reduced borrowing costs significantly. As noted by the RBI Governor, the full impact of these rate cuts is still unfolding, and we expect retail credit demand—particularly for home and personal loans—to gain further momentum in the coming months, driven by the upcoming festive season. We believe this is not the end of the current rate cut cycle, and we anticipate further easing in the repo rate in subsequent MPC meetings, depending on evolving macroeconomic condition.”

Parvinder Singh, CEO, Trident Realty: “A stable interest rate environment gives homebuyers the confidence to prepare for the future, while allowing developers like us to focus on long-term, value-driven projects. It reflects a broader trust in the resilience of the Indian economy and supports a healthy investment environment. This not only positively impacts the sentiment in the housing market, but it also reinforces our focus to building sustainable, future-ready developments that cater to the constantly evolving demands of today’s homebuyers and communities.” 

Ashish Agarwal, Director, AU Real Estate: “Stable interest rates play a vital role in enhancing the affordability and accessibility of homeownership. As financing becomes more accessible, we anticipate a growing demand for luxury housing, driven by buyers seeking homes that truly embody their personal aspirations. This environment not only strengthens buyer confidence but also empowers us to continue delivering exceptional, high-quality living spaces within the luxury segment.” 

Avneesh Sood, Director, Eros Group: “For the real estate sector, this stable policy environment is crucial. Lending rates are softening, especially in the mid and premium housing segments, which is already encouraging fresh buyer interest. Developers too are finding more headroom for project planning and funding. With global uncertainties, tariff risks, and uneven industrial growth, a neutral stance provides predictability and cushions sentiment. Rural consumption remains resilient, and public capex is driving infrastructure momentum. This combination, if sustained, can lay the groundwork for a stronger and broader-based real estate recovery in the coming quarters.”

Aman Trehan, Executive Director, Trehan Iris: “This move ensures market stability, supports high-value investments, and boosts confidence. With the FY26 GDP growth forecast retained at 6.5%, we expect strong momentum and accelerated growth in the real estate sector.”

Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited: “Stable borrowing costs will improve homebuyer affordability by keeping EMIs under control and allow developers to optimise capital for large-scale and ongoing projects. This monetary stability is expected to accelerate purchase decisions in price-sensitive segments, enhance liquidity, and strengthen market sentiment. We foresee this move supporting sustained demand across both residential and commercial real estate, driving long-term growth and reinforcing the sector’s overall stability.”

Ashish Sharma, AVP Operations, Brahma Group: “This monetary stability is poised to boost buyer confidence, spur activity in price-sensitive markets, and strengthen liquidity. We anticipate sustained demand across residential and commercial segments, driving long-term growth and reinforcing the overall stability of the real estate ecosystem.”

Aman Sharma, Founder and Managing Director of Aarize Group: “For the real estate sector, this steady stance supports stability in borrowing costs and helps maintain positive buyer sentiment. We believe this consistency offers the right environment for long-term planning and investment, encouraging sustained growth across residential and commercial developments, while aligning with the broader economic recovery and infrastructure-led development goals.”

Mohit Goel, Managing Director, Omaxe Ltd: “While affordability remains a key factor for homebuyers, especially in emerging cities, sustained policy consistency allows both developers and consumers to plan with greater confidence. We’re seeing strong traction in Tier-2 markets, where infrastructure growth and improving connectivity are translating into real demand. The current rate environment is well-aligned with the momentum we’re witnessing across these regions and expecting this to rise specially during the festive season.”

Amrita Gupta, Director, Manglam Group: “By maintaining the repo rate, the RBI has sent a reassuring signal to both buyers and developers. Festive quarters are a high-conversion period for residential sales, and stable interest rates help buyers make faster purchase decisions. After a phase of easing, this pause gives the market a chance to consolidate and absorb the gains. In Tier 2 and Tier 3 cities in particular — where rate sensitivity is higher — this decision will support sustained traction. We see it as a positive step in maintaining momentum without creating sudden shifts in buyer sentiment.”

Aditya Kushwaha, CEO and Director Axis Ecorp: We’re seeing heightened interest from both domestic buyers and NRIs, particularly in the holiday home segment where lifestyle aspirations are meeting sound investment logic. Fractional ownership, in particular, is gaining traction as it allows access to premium properties with a lower capital outlay. The steady rate environment reinforces buyer confidence and supports long-term planning in emerging markets like Goa.”

Ramani Sastri, Chairman and MD, Sterling Developers: “The residential real estate sector has adapted to the prevailing interest rate environment and continues to show robust performance. The growth trajectory of the realty sector remains positive, and more and more people are investing in the mid, premium, and luxury segment. The housing sector has already been benefiting from the cumulative 100 bps cut in the repo rate, as reflected in the rising consumer demand driven by lower home loan interest rates. As the festive season approaches, we were looking for a rate cut which would have definitely boosted affordability further and investments in the real estate sector as stability in interest rates provides confidence to both homebuyers and developers. However, the decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms.”

Sandeep Ahuja, Global CEO, Atmosphere Living: “The move by RBI to keep the repo rate at 5.50% will offer a stability in the dynamic economic environment. This kind of continuation holds true to the long-term growth trend of the real estate sector, especially within the markets that require elaborate planning like the upper-level housing, branded residential and the serviced apartments.”