The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% has been welcomed by the real estate sector, as it comes against the backdrop of a stronger growth outlook following the Union Budget’s push for higher government spending and improving external trade prospects. With infrastructure-led development gaining pace and expectations of faster economic growth building up, the central bank’s policy continuity is seen as a key enabler for sustaining housing demand, supporting investment sentiment, and providing much-needed visibility on borrowing costs, even as inflationary pressures remain on the RBI’s watchlist.
Mr. Prashant Sharma, President, NAREDCO Maharashtra
“The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector at a time when growth expectations have strengthened following the Union Budget’s thrust on higher government spending and improving external trade prospects after recent trade agreements. With fiscal support rising and infrastructure-led development gaining momentum, policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence. While the upward revision in inflation forecasts warrants caution, the RBI’s neutral stance reflects a calibrated approach to balancing inflation risks with growth momentum, which is positive for long-term real estate growth.”
Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The RBI’s status quo on interest rates comes at an opportune time, as the Union Budget’s increased government spending and improving trade outlook have lifted expectations of faster economic growth. With fiscal and external tailwinds supporting the economy, stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity. Although inflation risks remain on the radar, the RBI’s balanced approach toward supporting growth while monitoring price pressures reinforces real estate’s appeal as a stable, long-term asset class.”
Mr. Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group
“The RBI’s decision to maintain status quo on interest rates reflects a well-calibrated approach to balancing inflation control with economic momentum. For real estate developers, this policy stability brings much-needed clarity on financing costs and supports uninterrupted project execution. The upward revision in GDP growth forecasts, along with positive indicators from services exports and trade agreements, is encouraging for urban housing demand. With interest rates remaining stable, we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”
Mr. Shilpin Tater, Managing Director, Superb Realty
“The RBI’s neutral stance and steady repo rate of 5.25% reinforce confidence across the real estate ecosystem. With economic growth projections upgraded and government-led capex continuing to drive infrastructure development, demand for quality commercial and residential assets is expected to remain resilient. While the RBI has flagged inflationary pressures, its decision to hold rates steady will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“The decision to maintain status quo on policy rates is reassuring for both homebuyers and developers. Stable borrowing costs, coupled with an improved growth outlook for FY26 and FY27, create a supportive environment for housing demand, especially in metropolitan markets. Although the RBI has revised inflation forecasts upward, its balanced and data-driven approach indicates confidence in India’s economic momentum. This policy continuity will help sustain residential demand and support long-term housing affordability.”
Mr. Dhruman Shah, Promoter, Ariha Group
“The RBI’s decision to keep the repo rate unchanged at 5.25% reflects confidence in the Indian economy’s underlying strength and a pragmatic approach to sustaining growth. The continued pause on interest rates provides much-needed predictability, particularly for the real estate sector, at a time when GDP growth expectations remain robust and policy support is aiding demand fundamentals. While inflation remains a key monitorable, the current stance continues to support residential demand in well-located urban markets. We are witnessing sustained buyer confidence, improved project execution and healthy sales momentum, positioning the sector for stable, long-term growth.”
Mr. Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd.
“The RBI’s steady policy stance underscores a careful calibration between growth support and inflation management. For the real estate ecosystem, unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes. Improved macro visibility, rising infrastructure spends, and optimism around trade agreements will positively influence real estate transactions, especially in commercial and investment-driven segments over the medium term.”