New Delhi: The Reserve Bank of India’s decision to maintain the status quo on interest rates is expected to support housing demand across key residential markets, with industry stakeholders stating that stable borrowing costs will strengthen homebuyer confidence and provide greater visibility for long-term investment planning.
The residential real estate sector has continued to witness healthy sales momentum, and developers believe that predictable financing costs remain a critical factor for prospective homebuyers, particularly end-users who depend on home loans to finance property purchases.
According to industry stakeholders, stability in interest rates allows buyers to plan finances more effectively while enabling developers to maintain project execution schedules and investment strategies without uncertainty arising from frequent monetary policy changes.
Ashish Bhutani, CEO, Bhutani Infra, said, “The RBI’s decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a measured and pragmatic approach amid global uncertainties and evolving inflation dynamics. For the real estate sector, stability in interest rates is as important as rate cuts, as it strengthens buyer confidence and enables long-term investment planning. A predictable borrowing environment allows homebuyers to make informed decisions and supports developers in executing projects efficiently. We expect the continued stability in the interest rate regime to sustain housing demand across segments, particularly in the mid-income and premium categories, while contributing positively to the sector’s growth momentum.”
Khalid Masood, Managing Director, Shalimar Corp, said the real estate sector benefits significantly from policy stability, adding that stable interest rates help developers, investors and homebuyers plan finances more efficiently and create a favourable environment for long-term growth.
Industry stakeholders noted that certainty around financing costs remains particularly important in the mid-income and premium housing segments, where home loan eligibility and EMI planning often influence purchasing decisions.
Vikas Garg, Joint Managing Director, Ganga Realty, said, “Policy stability plays a crucial role in maintaining market momentum. We believe that the RBI’s balanced approach will further strengthen buyer and investor sentiment, encourage long-term investments and support the overall growth trajectory of the real estate sector.”
Raghunath Reddy Bhattagiri, Co-founder & MD, Triguna Projects, said, “The repo rate decision reinforces confidence across the real estate ecosystem. Stable borrowing costs encourage homebuyers to move forward with purchase decisions while allowing developers to plan investments with greater certainty. Beyond residential housing, sectors such as plotted developments, mixed-use communities and commercial real estate also benefit from a predictable interest rate environment. Consistency in monetary policy supports long-term growth, improves affordability, and strengthens overall market sentiment.”
Ravi Kant, Co-founder, Elegance Enterprises & Elegance Infra, said, “The RBI’s decision provides much-needed visibility for both developers and homebuyers at a time when the real estate sector continues to witness strong demand. Interest rate certainty plays a critical role in purchase decisions, particularly in the mid-income and premium housing segments where financing remains a key consideration.”
He added that a stable monetary environment supports investment confidence, facilitates smoother project execution and helps sustain the momentum built by the sector in recent years.
Developers also pointed to rapid urbanisation, infrastructure expansion, rising disposable incomes and growing homeownership aspirations as key factors supporting residential demand.
Market participants said the continuation of a stable interest rate regime is expected to keep housing demand resilient in the coming quarters. With infrastructure-led development creating new residential destinations and homeownership remaining a priority for Indian families, industry stakeholders expect the sector to continue its growth trajectory supported by favourable fundamentals and positive consumer sentiment.
