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The Reserve Bank of India has opted to keep the repo rate unchanged, maintaining its current level under the Liquidity Adjustment Facility amid persistent global and domestic uncertainties. This policy continuity has been met with a positive response from the real estate sector, which sees the move as supportive of consumer confidence and housing affordability. Developers believe stable borrowing costs, reinforced by earlier rate cuts, will help sustain momentum in residential demand, particularly with the festive season approaching.
The Reserve Bank of India decided to keep the repo rate unchanged during its recent monetary policy review, with the Monetary Policy Committee voting unanimously in favour of maintaining the status quo under the Liquidity Adjustment Facility. The Central Bank cited continuing geopolitical and tariff-related uncertainties as key reasons for its cautious stance, noting that the effects of the cumulative 100 basis points reduction introduced across the last three policy reviews were still playing out across the economy. Advertisement
According to the RBI Governor, the committee had carefully assessed ongoing macroeconomic developments before arriving at its decision. While inflation remains within target range, the transmission of previous rate cuts to the broader financial system was described as a work in progress.
The real estate sector reacted positively to the unchanged stance, viewing it as a stabilising measure that ensures predictability and preserves buyer sentiment. Mr. Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd., stated that the decision signalled a steady policy approach amidst global volatility. He noted that reduced borrowing costs, following the earlier three rate cuts, continued to support housing affordability and consumer confidence-particularly within key urban markets.
Echoing this outlook, Mr. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, observed that while the sector had hoped for a further cut, prevailing rates were already at relatively accommodative levels. He pointed out that the cumulative impact of the 100 basis points reduction had made housing finance more accessible, contributing to robust residential sales across segments. He anticipated this momentum would sustain, especially as festive-season offerings attract buyer interest.
Ashish Kukreja, CEO and Founder of Homesfy.in and mymagnet.io, reflected on the RBI's stance, saying that holding the repo rate keeps borrowing costs unchanged at a time when many homebuyers, especially in the affordable and mid-income segments, were hoping for some relief. He explained that a rate cut could have directly supported housing affordability, particularly in price-sensitive markets where even a minor change in EMIs affects buyer sentiment.
"Despite the pause, underlying demand remains strong," Kukreja said, pointing to stable incomes, improving consumer sentiment, and continued traction in both Tier 1 and emerging Tier 2 cities. He noted that the residential market is at a stage where even modest policy interventions can significantly influence momentum and expressed hope that housing affordability will remain a focus in future RBI reviews.
Mr. Raoul Kapoor, Co-CEO at Andromeda Sales and Distribution Pvt Ltd, remarked that while inflation remained well within manageable levels and the monsoon had been favourable, the RBI's hesitation stemmed from lingering global uncertainties. However, he believed the easing cycle was not over and hinted at the possibility of further rate reductions if macroeconomic indicators remain favourable in the coming months.
In Thane, one of India's fastest-growing housing markets, CREDAI MCHI Thane President Sachin Mirani noted that while a rate cut would have helped the affordable and mid-segment further, homebuyer confidence in the region remains driven by long-term stability rather than short-term rate movements. Hon. Secretary Faiyaz Virani added that Thane developers are proactively sustaining demand by offering festive deals and flexible payment plans to keep the market active despite the RBI's pause.
Commenting on the RBI Repo Rate pause announcement today, Kamal Khetan, Chairman & Managing Director, Sunteck Realty, expressed, "RBI's decision to maintain a status quo on the policy rate reinforces stronger purchasing sentiment for homebuyers, especially during the festive season. The unchanged repo rate translates into sustained interest rates, which in-turn may encourage a larger segment of homebuyers to plan their investments through financing. The continued policy transmission of earlier rate cuts is gradually easing EMIs, reinforcing buyer confidence and making homeownership more accessible."
With steady interest rates, supportive macroeconomic signals, and a healthy flow of new launches, real estate stakeholders are optimistic that the current policy environment will foster continued credit growth, especially in the housing segment.
The real estate sector has welcomed this stability, especially in light of past rate reductions that continue to benefit home loan affordability. Industry leaders anticipate that the prevailing environment, coupled with festive season demand and developer incentives, will help maintain the sector's growth trajectory and bolster credit activity across the board.
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