New Delhi: As the Reserve Bank of India (RBI) prepares to announce its latest monetary policy decision, stakeholders across the real estate sector are largely expecting the central bank to keep the repo rate unchanged.
Industry participants believe that maintaining the current interest rate environment would help preserve housing affordability, support buyer sentiment, and ensure continued momentum across residential and commercial real estate markets. Developers, investors, and workspace providers have indicated that a stable repo rate could contribute to sustained demand, improved access to financing, and greater confidence among market participants.
Khalid Masood, Managing Director, M/s. Shalimar Corp Ltd, said, “It is expected that RBI will keep the repo rate unchanged, taking the logical decision based on the available data from the monetary policy perspective. Over the past quarters, the market of residential real estate exhibited significant momentum owing to favourable borrowing rates and solid demand from end consumers. Keeping the repo rate unchanged will ensure the buyers of residential property that they can afford houses and have easy access to funding. Hence, such move will increase confidence of all stakeholders involved.”
Rajni Kant Mishra, Founder and Chairman, Amrawati Group, said, “The assumption that there will be no changes to the repo rate is sensible in the present economic conditions. While inflation threats must be kept under constant control, there are still many good signals coming from the growth statistics. Therefore, stability in monetary policy is necessary to keep the markets stable. As for the real estate, an unchanged interest rate will give buyers an opportunity to feel safe in terms of future prices and will facilitate development processes for those who invest their money in property construction.”
Ravi Kant, Co-founder of Elegance Enterprises and Elegance Infra, said, “The realty sector will be expecting that there is no change in the repo rate in the upcoming monetary policy statement. The present interest rate scenario is aiding in stabilizing the market and in sustaining a constant level of demand for homes. Any hike in interest levels will lead to changes in affordability levels and delay buying decisions, especially for first-time buyers. If there is no change in the repo rate, it means the existing home loan rates will remain constant, thereby boosting consumer sentiments and encouraging investments in the sector. It will help in project execution by the developers.”
According to industry stakeholders, housing affordability remains one of the most important drivers of residential demand. Stable borrowing costs are widely viewed as a key factor supporting home purchase decisions, particularly among first-time buyers and end-users.
Raghunath Reddy Bhattagiri, Co-founder and Managing Director, Triguna Projects, said, “The RBI is widely expected to maintain the repo rate at its current level, reflecting confidence in India’s growth outlook while continuing to monitor inflation trends. For the real estate sector, a stable interest rate environment plays a vital role in sustaining housing demand and enhancing affordability for homebuyers. Policy continuity would help maintain positive market sentiment, support long-term investments, and provide developers with greater visibility for planning and execution. An unchanged rate would further reinforce the sector’s growth momentum and contribute to the overall stability of the housing market.”
The discussion around monetary policy is also influencing commercial real estate and workplace strategies, particularly as businesses navigate economic uncertainty and evolving occupancy requirements.
Vishal Datt Wadhwa, Founder and CEO of CoWorkZen, said, “Ahead of this MPC, most businesses are already operating with a fair degree of caution. Global factors—oil prices, currency volatility, and overall uncertainty—are making cost planning a bit more difficult, regardless of whether rates move immediately or not.
That’s clearly reflecting in how companies are approaching office space. There’s more hesitation around long-term leases and a stronger preference for flexible setups. If the RBI holds rates, it provides some near-term stability, but it doesn’t change the underlying behaviour. And if conditions tighten later, that shift towards flexibility will only accelerate. We’re already seeing it in the numbers—India’s flex stock is nearing 80 million sq. ft., with enterprises driving a large part of demand. For many companies, flexible workspaces are becoming a way to manage risk, not just cost.”
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Mohit Mittal, CEO of MORES, said, “NCR leasing is at 13–14 million sq ft in H1. In corridors like Noida Expressway and Dwarka Expressway, demand is running ahead of supply. A hold is expected. But the real question is what follows. Crude is unsettled. The rupee has been under pressure. If that doesn’t ease, the RBI’s room to hold narrows — and rate risk doesn’t vanish, it just moves to the second half. What matters on June 5th isn’t the number. It’s the tone. A neutral-to-accommodative hold keeps EMIs steady, buyers confident, and project pipelines moving. A hawkish hold — even with rates unchanged — shifts lender behaviour and buyer psychology. Markets read signals before they read data. If the RBI is eventually forced to tighten, affordable and mid-segment take the first hit. Luxury has more cushion, but no segment is fully insulated.”
Industry executives believe that the RBI’s commentary accompanying the policy announcement could be as significant as the rate decision itself. Market participants are expected to closely monitor the central bank’s outlook on inflation, growth, liquidity, and future monetary policy direction.
