Amid festive season, the Reserve Bank of India hit a pause button on the repo rate, keeping it unchanged at 5.5%. Though the steady borrowing costs are meant to keep the homebuyer sentiment intact, yet a further rate cut would have benefited the affordable and mid-priced segments. Torbit Realty presents an overview of industry viewpoints. 

Anuj Puri, Chairman, ANAROCK Group

RBI’s decision to keep the repo rate unchanged at 5.5% maintains home loan EMIs at current levels, which helps sustain buyer sentiment but does not improve housing affordability. This stability means existing home loan borrowers won’t see any immediate EMI changes, while new borrowers will find loan interest rates holding steady. However, the recent GST rate cuts provide significant relief. With GST on cement reduced from 28% to 18%, construction costs are expected to fall by 3-5%, potentially reducing home prices by 1-1.5% for buyers. This reduction could save homebuyers INR 1-3 lakh on purchases, particularly benefiting affordable and mid-segment housing where cost sensitivity is high.  The combination of stable interest rates and lower construction costs creates a favourable environment for housing demand, especially during the ongoing festive season.”

Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL 

The potent combination of a rate cut on top of the recent GST reforms would have provided a significant boost to the residential market, especially the affordable and mid segments, which, after a strong run, began to show early signs of growth moderation in the second quarter of 2025. For the residential market, this stability in capital cost provides a clear runway for developers. It nurtures the organic momentum we are seeing, ensuring growth is sustainable and not artificially inflated. This predictability is equally critical for the commercial real estate sector, which continues its record-breaking run. Stable capital costs are essential for the large-scale investment decisions that have propelled India’s office market to new heights. 

Shekhar Patel, President, CREDAI: “The unchanged repo rate gives the housing sector the steadiness it needs amid global uncertainty. Predictable borrowing costs allow buyers to plan long-term and give developers the clarity to progress financing and projects. Recent GST rationalisation has lifted sentiment and increased demand across sectors. While markets had anticipated a 25-basis-point cut , we remain hopeful the RBI will deliver a cumulative 50-basis-point easing this fiscal in two tranches, which would further support real estate. It is essential that banks pass these benefits to both new and existing borrowers to ensure sustained demand through the festive season.”

G. Hari Babu, National President, NAREDCO

The unchanged repo rate alongside the projected real GDP growth of 6.8% is a welcome move. However, just as the government has boosted various sectors by cutting GST, a reduction in the repo rate is needed to energise the real estate sector. We urge the RBI to consider bringing the repo rate below 5.5% in the next MPC meeting. Lower interest rates will strengthen homebuyers’ confidence, increase housing demand, and particularly benefit the affordable housing segment. Supporting industries linked to real estate such as cement, steel, electricals, pipes, and interiors will also see growth. A cut in repo rate will reduce EMIs on housing loans, enhance the purchasing capacity of middle-class families, and give further momentum to government’s ‘Housing for All’ mission.

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

 “The move is expected to sustain positive momentum across sectors, including real estate, by supporting liquidity, boosting consumer confidence, and encouraging investment activity. With the festive quarter beginning on a strong note and GST reforms further lifting sentiment, the housing sector is likely to continue witnessing steady demand across segments.  Looking ahead, the status quo is set to ensure a stable and balanced growth trajectory for the real estate ecosystem, benefiting developers, buyers, and allied sectors alike.”

Akhil Saraf, Founder & CEO, Reloy 

The RBI decision to maintain the repo rate at 5.50% and to keep a neutral policy stance is a balanced move given the current environment. The implications for the real estate sector are mixed but predominantly positive. The stability in home loan interest rates provides buyers with clarity and supports demand, particularly in the mid-income and affordable housing segments. As India’s economic momentum begins to show signs of moderation, the real estate industry finds itself in a unique position to serve as a catalyst for growth, potentially attracting investments and enhancing housing demand across various segments. However, the absence of additional monetary easing suggests that a rapid recovery cannot be expected solely from such measures; instead, a sustained recovery will likely hinge on robust fiscal incentives, meaningful regulatory reforms, and heightened consumer confidence.

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution

The status quo on policy rates was on expected lines.  Importantly, the cumulative 100 basis point rate cut delivered so far this year has already enhanced borrowing affordability in a meaningful way. To put this into perspective, a 100-bps cut reduces the EMI on a ₹1 lakh loan with a 20-year tenure by approximately ₹65 per lakh—translating into savings of nearly ₹1625 and ₹3250 respectively for loans of ₹25 lakh and ₹50 lakh.

When combined with additional savings from the revised income tax slabs and lower GST on key goods and services, household purchasing power has improved considerably. This creates a strong environment for credit demand to rise. As we move ahead into the festive season, we expect to see a significant boost in borrowing across categories—ranging from consumer loans to housing finance—driven by improved affordability, policy support, and stronger consumer sentiment.

Amit Goyal, Managing Director India, Sotheby’s International Realty

The repo rate pause offers stability at a time when both homebuyers and investors are seeking clarity. For end-users, steady borrowing costs help sustain affordability and confidence, particularly as demand for larger, lifestyle-driven homes continues to grow. For investors, predictability in monetary policy reinforces India’s appeal as a resilient, high-growth real estate market, especially in the luxury segment where global capital is showing rising interest. This pause is about signaling long-term confidence — an opportunity for the industry to consolidate demand, innovate, and deliver with greater consistency.

Vikas Bhasin, Managing Director, Saya Group

This year, we have already witnessed significant support from the government—starting with consecutive policy rate cuts, followed by tax-saving measures in Budget 2025, and most recently, the rationalization of GST. Collectively, these initiatives have strengthened household savings and boosted the confidence of homebuyers. With these policy-driven benefits in the backdrop, coupled with attractive festive offers from developers and lenders, we anticipate strong demand from homebuyers this festive season as they look to make the most of this favorable environment.

Nitin Bavisi, CFO, Ajmera Realty & Infra India Ltd

Keeping repo rate unchanged after a cumulative 100 basis point cut earlier this year, showcases a thoughtful balance between sustaining economic growth and ensures financial stability. The easing of inflation along with CRR and revised positive GDP growth projections of 6.8% for FY26 together augurs well for the real estate sector, keeping the consumer sentiment and industry momentum upbeat right at the cusp of festive season. 

For the housing sector, especially during the festive period when demand normally surges, the consistency in monetary policy sends a strong positive message. It boosts customers confidence and empowers them to make decisions right in time. Furthermore, supportive policy interventions like GST rationalization, coupled with lower inflation trends and India’s sound economic fundamentals, are set to bolster the growth profile of the sector. 

Sudipta Roy, Managing Director & CEO, L&T Finance Ltd

While the status quo in policy rates was along the expected lines, however, the real action was contained in the various measures announced to improve the flow of credit in the economy. Measures like the glide path towards ECL framework, expanding scope of capital market lending, removing restrictions on collection accounts etc. are all aptly timed and will help the financial system to aid aspirational growth levels.  The upgraded growth expectation for the current fiscal is also a big reassurance of strong domestic momentum despite external headwinds. 

Ashish Sharma, AVP Operations, Brahma Group

RBI’s decision to keep the repo rate steady at 5.5% with a neutral stance, provides the much-needed stability for the real estate sector. Consistent borrowing costs help keep EMIs affordable for homebuyers. This monetary consistency will reinforce buyer confidence, drive activity in price-sensitive markets, and ensure healthy liquidity. We expect sustained demand across residential and commercial segments, supporting long-term sectoral growth and strengthening overall market stability.

Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited

The second consecutive repo rate pause reflects a balanced approach to sustain economic stability while keeping inflation in check. For the real estate sector, stability in lending rates ensures predictability for both developers and homebuyers. Developers can continue managing capital efficiently without sudden disruptions in financing costs, while homebuyers benefit from steady EMIs, supporting confidence in long-term investments. This consistency is particularly important for ongoing and large-scale projects, as it sustains demand across residential and commercial segments, improves cash flow stability, and strengthens overall market sentiment.

Ashish Agarwal, Director, AU Real Estate

 “The decision to keep the repo rate unchanged comes at a critical juncture for the housing market. Homebuyers are already recalibrating budgets to move into more spacious living, and keeping rates steady ensures affordability doesn’t slip out of reach. Even a 25-basis-point hike could have meant a substantial increase in EMI outgo, making many buyers defer purchase decision. For developers too, with project finance costs elevated and delivery timelines tightening, rate stability allows focus on execution rather than firefighting financial volatility. This will help the festive buying momentum getting converted into concrete sales.  

Aman Sharma, Founder and Managing Director, Aarize Group

Following the repo rate pause after cumulative cuts of 100 bps this year, the real estate sector now awaits quicker transmission of these cuts to lending rates. A modest rate reduction or a dovish stance would significantly improve affordability for homebuyers, revive sales momentum, and encourage fresh investments in housing. For developers, such a move would not only boost demand but also reinforce confidence in stability and policy support.

Mohit Goel, Managing Director, Omaxe Ltd

The repo rate pause by RBI at the onset of the festive season is a timely and growth-supportive move as steady interest rates will further strengthen consumer confidence and purchasing power. The recent GST rate cuts add another layer of optimism by improving overall affordability and stimulating spending sentiment. Together, these policy measures create a conducive environment for housing demand, particularly in tier-II and tier-III cities where value sensitivity drives decisions. 

Aditya Kushwaha, CEO and Director, Axis Ecorp

Stability in monetary policy keeps sentiment positive for holiday homes, where both NRIs and domestic buyers are showing strong interest. Along with the recent GST concessions on construction inputs, it creates an environment where second homes remain attractive as both lifestyle and long-term investment assets. We see this as a window where second homes, especially in markets like Goa, will attract more decisive investments.

Rohit Kishore, CEO, Hero Realty

Stable borrowing costs will benefit both homebuyers and developers. For buyers, it means continued lower EMIs and easier access to home loans, which can encourage more people to buy homes. For developers, the sustained interest rates will help manage costs and finish projects on time. This policy continuity will boost confidence in the market and maintain demand for homes and office spaces. We expect the luxury housing segment to stay strong, especially in metro cities. 

Sudeep Bhatt, Director Strategy, Whiteland Corporation

The repo rate pause is a strong positive for the Delhi NCR housing market. We’ve seen steady growth following previous rate cuts this year. For homebuyers, it ensures a stable interest rate environment, boosting confidence. For developers, the pause allows focused project planning and execution without concerns over rising borrowing costs, supporting a robust pipeline for new launches. This will help sustain demand momentum and we expect sentiment across the region to remain optimistic.

Mohit Agarwal, Business Head, Conscient Infrastructure Pvt. Ltd

The continued lower borrowing costs will help preserve affordability for luxury homebuyers and investors, thereby sustaining demand in high-end residential markets. This unchanged stance, coupled with the neutral outlook, reinforces confidence among HNIs and NRIs to make strategic real estate investments. As a developer, we continue to benefit from predictable financing costs, enabling steady project execution. We anticipate sustained momentum in the luxury housing sector, especially in metro cities.