The Reserve Bank of India’s decision to maintain the repo rate at 5.25% has largely met industry expectations, with real estate stakeholders viewing the move as a step towards sustaining stability, affordability, and long-term growth across residential segments. At a time when homebuyers remain highly sensitive to interest rate movements and developers are focused on disciplined capital deployment, the status quo on rates offers much-needed predictability.
Industry leaders believe that stable borrowing costs are critical for maintaining end-user confidence, encouraging long-term investment planning, and supporting sustained demand in both mass and premium housing categories.
According to Aman Sharma, Founder and Managing Director, Aarize Group,
“Today’s homebuyers are highly sensitive towards the change in interest rates, as they tend to make decisions based on long-term financial comfort rather than short-term incentives. So, we anticipate that the repo rate will be unchanged, giving the housing market much-needed predictability. Low interest rates encourage potential buyers to move forward with planned purchases, as a stable rate helps to maintain end-user confidence, makes transactions easier, and allows the housing market to grow while sustaining the real estate sector’s growth momentum.”
Echoing similar sentiment, Ashish Agarwal, Director, AU Real Estate, highlighted the role of monetary consistency in reinforcing buyer and investor confidence, especially in the premium segment.
“The repo rates are expected to remain stable and supportive for a constructive year for real estate. The robustness in the repo rates is likely to induce sustained confidence among homebuyers and long-term investors alike. For premium buyers, invariability in borrowing costs supports decisive purchasing, while for investors it reinforces real estate’s role as a dependable store of value. The monetary stability, paired with the government’s continued thrust on capital expenditure, creates a strong foundation for asset creation and wealth preservation.”
Emerging residential categories such as senior living are also expected to benefit from interest rate stability. Anil Godara, Founder and Managing Director, J Estates, emphasised the importance of predictable financing for long-term, service-oriented housing models.
“We expect that the repo rate will remain unchanged, which is particularly important for emerging segments like senior living. This category depends on long-term investment planning and steady financing structures. Stable interest rates allow developers to build well-designed, service-oriented senior communities while keeping costs manageable for residents.”
From a lending and distribution perspective, Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, pointed out that the transmission of earlier rate cuts is still unfolding and continues to enhance affordability.
“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.”
He further added that the impact of cumulative cuts is meaningful for long-term 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.”
Developers believe the rate pause is particularly supportive amid stable inflation and rising public infrastructure investment. 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.”
Similarly, Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, noted that rate continuity helps both buyers and developers take long-term decisions with greater confidence.
“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.”
Data and advisory firms also see stability supporting broader market momentum. Shrinivas Rao, FRICS, CEO, Vestian, stated:
“The year 2026 began with the repo rate being maintained at its three-year low. This is expected to enhance stability and provide an impetus to economic growth amid prevailing global uncertainties.”
Luxury and investment-focused segments remain optimistic as well. Amit Goyal, Managing Director, India Sotheby’s International Realty, said:
“The RBI holding the repo rate steady, largely in line with expectations, brings a sense of reassurance to the housing market. For homebuyers, especially end-users, it reinforces confidence to move ahead with long-term decisions without worrying about sudden cost shifts.”
At the same time, some market observers believe additional monetary support could have further improved sentiment. Samir Jasuja, Founder and CEO, PropEquity, noted:
“Two consecutive years of decline in housing sales warranted a further repo rate cut by the RBI to ensure affordable credit for both homebuyers and developers.”
From an alternative investment perspective, Ankur Jalan, CEO, Golden Growth Fund (GGF), underlined the role of real estate-focused AIFs in bridging funding gaps amid selective bank lending.
“While the MPC has maintained a status quo on the policy rate, a continued supportive monetary stance focused on ensuring adequate liquidity and smoother transmission will further enhance the appeal of real estate AIFs.”
Overall, the RBI’s decision to keep the repo rate unchanged is being viewed as a balancing act—supporting affordability, ensuring policy continuity, and enabling stakeholders across housing, finance, and investment ecosystems to plan with clarity. Industry leaders believe that sustained stability, coupled with strong infrastructure spending and effective transmission of past rate cuts, will remain key to maintaining momentum in India’s evolving real estate market.
