The Reserve Bank of India’s decision to keep the repo rate unchanged has drawn a largely supportive response from real estate, housing finance, construction and investment leaders, who see the move as reinforcing stability and predictability amid global uncertainty. However, several stakeholders also flag the missed opportunity for a rate cut to revive affordable housing demand and accelerate sales momentum.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE

The pause on policy rates by the RBi reflects a measured approach amid demand recovery and steady growth momentum. With a cumulative 100 bps cut since February 2025, the focus is now on improved credit flow and broader economic momentum. For the real estate sector, this signals stabilityand offers long-term predictability to developers and homebuyers. 

Anuj Puri, Chairman, Anarock Group

RBI’s decision to keep the repo rate at 5.25% means that home loan EMIs will not change either. This will keep buyers engaged but does nothing to lift demand further and does nothing to make housing more affordable. The upside is that current house loan borrowers will not experience any EMI shocks for now, and new borrowers can plan their housing purchases with the benefit of predictability. Demand for affordable and mid-segment homes remains strong, but continues to be challenged by escalated pricing, which affects affordability. A rate cut would have potentially brought at least some fence-sitters back to the market.

\\\\\\\\Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India

The RBI’s RBI has taken a focused stance in a volatile global environment as the pause underscores the central bank’s priority on managing currency pressures and external risks.While repo rate continues to remain at its lowest level in the post- pandemic period, further reduction in rates would have provided an added boost to homebuyer’s sentiment, particularly in the affordable housing segment .We expect banks to pass on a greater share of the existing rate benefits to consumers in the coming months. Further, easing of the rules for bank lending to REITs will ease credit access to lower cost funds for both buyers and developers. 

Shekhar G Patel, President, CREDAI

The RBI’s decision to maintain the repo rate at 5.25% provides policy stability amid global currency volatility and bond-yield pressures. At Credai, we view this continuity as constructive for real estate, where predictability in financing costs is essential for sustaining demand and investment sentiment.

As liquidity conditions normalise, a stable rate regime supports measured growth across segments. Credai believes that calibrated monetary easing over time, aligned with evolving macroeconomic conditions, can further improve housing affordability, expand access to home ownership, and support a more inclusive growth path for the sector.

Parveen Jain, President, NAREDCO

 “The RBI’s decision to keep the repo rate unchanged at 5.25 percent is a welcome step. At a time when domestic economic activity remains robust, and the growth outlook is positive, maintaining stable interest rates at this juncture,will encourage homebuyers to make purchasing decisions. It will also motivate developers to launch new projects to meet customer demand. At a time when the government has placed special emphasis on the development of cities with a population of 5 lakh and above in the budget, stable interest rates can provide a significant boost to Tier 2 and Tier 3 cities. Overall, this decision supports stability and sustained growth for the real estate sector and the country’s economy.

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution

The RBI’s decision to maintain a status quo on policy rates is largely in line with expectations, especially after the cumulative rate cut of 125 basis points in 2025. The transmission of these cuts is still playing out, with several banks yet to fully pass on the benefit to borrowers. A cumulative reduction of 125 basis points over a 20-year loan tenure translates into an EMI reduction of approximately ₹80 per lakh per month, significantly improving affordability and enhancing borrowing capacity for big-ticket purchases such as homes. For existing home loan borrowers currently servicing loans at interest rates above 8%, this presents a timely opportunity to negotiate better terms with their lenders or explore balance transfer options, as many banks are now offering home loans at interest rates close to 7.5% to new borrowers.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

The RBI’s decision to hold the repo rate steady at 5.25% offers stability for interest-rate–sensitive sectors like real estate in the current macroeconomic environment. With inflation remaining at manageable levels and the benefits of earlier rate cuts continuing to flow through to homebuyers in the form of improved affordability, residential demand has remained resilient. Supported by stable monetary policy and sustained public spending, the realty sector will continue to play a pivotal role in driving urban development and economy.

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation

The policy stability provides a supportive backdrop for the residential real estate market. While a rate cut would have lowered borrowing costs, a steady interest rate environment enables homebuyers to take long-term purchase decision with greater confidence and predictability. This is particularly relevant for the premium housing segment where buyers place strong emphasis on product quality, location and long-term value creation rather than short-term rate movements. For developers, rate continuity allows for more disciplined planning of project launches, construction schedules and capital deployment. 

Samir Jasuja, Founder and CEO, PropEquity

Two consecutive years of decline in housing sales warranted a further repo rate cut by the RBI to ensure affordable credit for both homebuyers and developers. With the growth outlook remaining positive and inflation at record lows, an additional push to growth could have significantly improved sentiment in the real estate sector. However, beyond rate action, it is equally critical for the apex bank to ensure adequate liquidity in the system and effective transmission of rate cuts by banks to deliver meaningful relief to the sector.

Ashish Jerath, President- Sales & Marketing, Smartworld Developers

A steady repo rate reinforces a sense of financial continuity at a time when long-term visibility is key for homebuyers. For a new generation of homebuyers, young professionals, entrepreneurs, and aspirational first movers, this kind of policy consistency offers a strong foundation to act with confidence. As demand shifts toward high-growth urban corridors, success will hinge on timely delivery, design intelligence, and the ability to turn stability into opportunity. 

 Adhil Shetty, CEO, Bank Bazaar

Home loan rates remain relatively competitive despite the rate pause by the RBI. Affordability continues to be supported by stable spreads, lender competition and selective concessions. Borrowers can still optimize costs by keeping EMIs higher to shorten loan tenures, reduce interest outgo, while balance transfer remains relevant and incremental savings.

Nikhil Madan, MD, Mahima Group

Repo rate pause along with 2026 budget’s clear emphasis on strengthening TIer-2 infra, creates a supportive backdrop for sustained growth beyond metros. Further, continued public investment in connectivity, urban infra and regional economic hubs is accelerating the markets of cities like Jaipur. Together, these factors reinforce the shift in housing demand towards Tier-2 markets where improving livability and long-term capital appreciation are increasingly converging.