The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% has reinforced stability and confidence across the real estate sector. Industry leaders believe that a steady interest rate environment, coupled with the continued transmission of earlier rate cuts and the government’s increased public capital expenditure, is supporting resilient residential demand. For homebuyers, this policy clarity encourages long-term purchase decisions, while for the sector as a whole, it strengthens the outlook for sustained growth, employment generation, and urban development.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said, “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. The Union government’s decision to raise public capital expenditure to ₹12.2 lakh crore in FY27, as announced in the Union Budget 2026, further strengthens the growth outlook through infrastructure-led development.
Supported by stable monetary policy and sustained public spending, the real estate sector will continue to play a pivotal role in driving economic growth, employment generation, and urban development across the country.”
Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The RBI’s decision to keep the repo rate unchanged at 5.25% reinforces policy stability and 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 decisions with greater confidence and predictability. This is particularly relevant for the premium housing segment, where buyers place stronger emphasis on product quality, location, and long-term value creation rather than short-term rate movements.”
Vikas Bhasin, Managing Director, Saya Group, said, “The RBI’s decision to maintain the status quo on policy rates is a positive and reassuring signal for the housing sector. Stability in interest rates plays a crucial role in homebuyer decision-making, as it reduces uncertainty and builds confidence among both end-users and investors. With home loan rates currently hovering around an affordable and comfortable level of approximately 7.5%, and expected to remain below 8% for an extended period, borrowing conditions remain supportive for residential purchases.”
Mr. Raoul Kapoor, Co CEO, Andromeda Sales and Distribution, said, “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.”
