The real estate sector is expecting stability in the Reserve Bank of India’s (RBI) repo rate, as it continues to play a crucial role in determining home loan interest rates, buyer sentiment, and overall market momentum.
Industry stakeholders believe that a pause or reduction in the repo rate would improve housing affordability, boost demand, and encourage investments, particularly in the mid-income and affordable housing segments.
Developers have also expressed optimism that a balanced monetary policy stance will help sustain liquidity and strengthen sectoral growth in the coming months.
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Ashish Bhutani, CEO Bhutani Infra said, “In a world marked by geopolitical uncertainty and currency volatility, the one thing the real estate sector cannot afford is unpredictability at home. A stable repo rate is not just a monetary decision — it is a signal of confidence to homebuyers, developers, and investors alike. When borrowing costs are predictable, financial discipline follows, project pipelines strengthen, and end-user participation deepens. India’s emerging urban corridors are ready to absorb growth, but they need policy consistency as a foundation. We look to the RBI to hold the line — and in doing so, anchor real estate’s continued role as one of India’s most reliable engines of economic growth and employment.”
Market participants broadly expect the RBI to maintain a cautious stance, with consensus estimates suggesting that the repo rate may remain around 5.25 percent amid evolving domestic and global conditions.
E Lakshminarayana Reddy, Founder & CEO, EARA Group said, “With the upcoming RBI monetary policy, the consensus expectation is that the central bank will maintain the repo rate at around 5.25%, adopting a cautious ‘wait-and-watch’ approach. While domestic inflation has remained largely within the comfort range, emerging global uncertainties—particularly rising crude oil prices and geopolitical tensions—pose upside risks. At the same time, India’s growth momentum remains resilient, giving the RBI room to pause and assess evolving conditions. The policy is likely to remain neutral, with any future action dependent on inflation trajectory and external factors. Stability in rates at this juncture would support both economic growth and financial market confidence.”
Experts also highlighted the need for balancing inflation control with sustained economic growth.
Rajani Kant Mishra, Founder and Chairman, Amrawati Group said, “The RBI is expected to maintain the repo rate, balancing controlled inflation with steady economic growth. A pause will provide stability to markets and borrowers, while allowing the central bank to closely monitor global uncertainties and evolving domestic economic conditions.”
Ravi Kant, CEO & Co-founder, Elegance Enterprises, said, “The RBI is expected to maintain a cautious stance on the repo rate, balancing inflation control with the need to support economic growth. While inflation has shown signs of moderation, global uncertainties and food price volatility may prompt the central bank to stay watchful. A status quo or a measured cut could help sustain momentum in consumption and investment without triggering inflationary pressures.”
Meanwhile, rising crude oil prices continue to exert pressure on construction costs, impacting project economics.
Mohit Mittal, CEO, MORES said, “Crude crossing $100 is not an abstraction for the real estate sector — it feeds directly into cement freight, steel logistics, and the overall cost structure of projects already under execution. Developers locked into pricing decided months ago are quietly absorbing margins they hadn’t budgeted for. That is the ground reality heading into April. A rate hold at 5.25% is what markets expect, and few would disagree with the call. The concern is timing — the 125 basis points delivered since early 2025 haven’t fully reached project finance or construction credit yet, while input costs are moving in the opposite direction. That squeeze, if it persists, will eventually show up in launch timelines and pricing. The April policy needs to send a clear signal that keeping credit affordable for the real economy — not just the banking system — remains a live priority.”
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Industry experts also noted that investor sentiment in premium housing remains sensitive to broader macroeconomic indicators.
H.S. Kandhari, Executive Director, Harmony Infra Ventures said, “Premium residential markets in India have, over the past two years, seen a meaningful uptick in NRI and high-net-worth investor interest. That interest is sensitive — not to repo rates directly, but to currency stability, capital flow confidence, and India’s macro positioning relative to the rest of the world. Right now, all three are under some pressure. The rupee is navigating genuine external headwinds and FPI flows have turned erratic as US trade policy continues to surprise markets globally. Ahead of April 8, the sector’s expectation is a hold at 5.25% — but more than the number, what premium residential markets need is a policy tone that reassures long-horizon investors that India remains a stable and attractive destination. A confident, well-communicated MPC outcome could actually work in the market’s favour — steadying sentiment at a moment when most other global markets are anything but steady.”
