The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25% in its first Monetary Policy Committee (MPC) decision for FY27, reflecting a calibrated approach amid global uncertainties, inflation concerns, and volatile commodity prices.
The decision is being seen as a stability-driven signal for India’s real estate sector, with industry stakeholders highlighting its positive impact on housing demand, borrowing costs, and project execution.
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Stable Repo Rate to Support Housing Demand
Sudeep Bhatt, Director Strategy, Whiteland Corporation, said,
“The RBI MPC has decided to keep the repo rate unchanged at 5.25%. The stance is significant for the real estate sector. It means stable home loans which directly boost housing demand, while improving liquidity for developers. The sector stands to benefit from the re-established buyer sentiment and a growth in investment appetite with EMIs and borrowing cost stabilising.”
Yashank Wason, Managing Director, Royal Green Realty, said,
“RBI MPC’s decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline.”
Predictability in Financing and Execution
Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd., said,
“The RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector. A steady rate environment ensures predictability in home loan costs, encouraging buyer confidence and sustaining housing demand. For developers, stable funding conditions and improved liquidity visibility enable better planning of project launches and execution timelines.”
Abhay Mishra, CEO & President, Jindal Realty, said,
“The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution.”
Liquidity, Investment Sentiment Remain Positive
Rajat Bokolia, CEO, Newstone, said,
“The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector. It translates into stable home loans, directly improving housing demand with better liquidity for developers.”
Jitender Yadav, Director, Roots Developers, said,
“The RBI’s decision to maintain the repo rate at 5.25% is a catalyst for renewed enthusiasm in the real estate sector. Stability in borrowing costs will make home loans more accessible which will increase demand of home buyers.”
Global Uncertainty and Cost Pressures Persist
Avneesh Sood, Director, Eros Group, said,
“The RBI’s decision to hold the repo rate at 5.25% reflects a calibrated pause amid rising global uncertainty… A pause now sustains buyer sentiment without triggering fresh affordability shocks.”
He noted that rising input and financing costs may continue to impact developer margins, even as foreign investment trends remain supportive.
Policy Stability Reinforces Market Confidence
Yateesh Wahaal, Director Finance, M3M India, said,
“The decision of the RBI to keep the repo rate unchanged at 5.25% reflects a calibrated approach to reinforce stability in the current times of global and domestic uncertainties.”
Sam Chopra, President and Country Head, eXp Realty India, said,
“The RBI’s decision to hold the repo rate at 5.25% reflects strategic restraint in an increasingly volatile and globally interconnected environment.”
Borrowing Costs Remain Attractive
Vikas Bhasin, Managing Director, Saya Group, said,
“For homebuyers, current home loan interest rates in the range of 7.25% to 7.5% per annum remain quite attractive.”
Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, said,
“At current home loan interest rates of around 7.25% to 7.5% per annum, the EMI for a 20-year tenure works out to approximately ₹790 to ₹810 per month per ₹1 lakh of loan.”
Economic Outlook Supports Sector Momentum
Industry estimates indicate inflation at 4.6% for FY 2026–27 and GDP growth at 6.9%, reinforcing a stable macroeconomic outlook.
Shrivallabh Goyal, CEO, Reliance Model Economic Township, said,
“A steady rate environment allows both homebuyers and developers to plan with greater confidence, supporting sustained absorption across segments.”
Also Read: Smart Real Estate Affordability Planner
Outlook for Real Estate Sector
Experts believe the unchanged repo rate will:
- Maintain stable EMIs
- Support housing demand
- Improve developer planning visibility
- Sustain investment confidence
However, geopolitical risks, crude price volatility, and supply chain disruptions remain key factors to watch.
