Industry leaders say policy continuity could support housing demand, investment activity and long-term business planning amid global uncertainty
The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% has received broad support from stakeholders across real estate, infrastructure, financial services and alternative investments, with industry leaders viewing the move as a step that reinforces confidence at a time of geopolitical tensions, volatile commodity prices and global economic uncertainty.
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The Monetary Policy Committee’s decision signals a preference for stability while balancing inflation management and growth considerations. Industry participants believe predictable borrowing costs remain critical for sustaining housing demand, supporting capital deployment and enabling long-term planning across sectors.
For the residential real estate sector, affordability and financing visibility continue to play a decisive role in homebuying decisions. Industry leaders said the unchanged rate environment offers clarity to both consumers and developers, helping maintain momentum in a market that continues to be driven largely by end-user demand.
“A steady interest rate environment supports buyer confidence by ensuring greater predictability in home loan repayments,” said Anil Godara, Founder and Managing Director, J Estates. According to Godara, policy continuity not only benefits homebuyers but also enables developers to plan investments and project execution more effectively.
Sharing a similar outlook, Parvinder Singh, CEO, Trident Realty, said a stable rate environment provides continuity for both homebuyers and developers. He noted that predictable borrowing costs help buyers plan finances with greater confidence while allowing developers to focus on timely project delivery and long-term growth strategies.
The significance of policy stability was also highlighted by Ashish Agarwal, Director, AU Real Estate, who said the current environment of geopolitical tensions and global uncertainty makes clarity in interest-rate policy particularly important for long-term planning and investment decisions. Aman Sharma, Managing Director and Founder, Aarize Group, added that policy consistency remains essential for sustaining economic momentum, strengthening investment confidence and supporting overall market sentiment.
Developers across housing markets believe the RBI’s stance provides reassurance at a time when affordability, construction costs and economic uncertainty continue to influence buyer behaviour.
“Policy continuity provides much-needed stability for both businesses and consumers,” said Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd. He noted that predictability in interest rates remains a key driver of affordability, homebuyer sentiment and long-term investment planning.
Jash Panchamia, Executive Director, Jaypee Infratech Limited, described the decision as prudent and reassuring, stating that stable financing conditions remain critical for maintaining consumer confidence. According to Panchamia, easing borrowing costs in recent quarters have already improved affordability and encouraged purchase decisions, while the current policy stance could help preserve that momentum.
Industry stakeholders also pointed to the broader macroeconomic backdrop influencing the RBI’s decision. Ramani Sastri, Chairman and Managing Director, Sterling Developers, said the unchanged rate provides much-needed stability amid geopolitical uncertainty and volatile oil prices. Avneesh Sood, Director, Eros Group, echoed this view, stating that the RBI’s decision reflects the need to balance growth and inflation while navigating a challenging global environment.
Beyond residential real estate, investors and financial-market participants interpreted the RBI’s move as a sign of policy prudence. They argued that predictability in monetary policy is particularly valuable at a time when capital markets are responding to shifting global economic conditions.
“The RBI’s decision reflects a prudent approach amid geopolitical uncertainties, volatile commodity prices and global market disruptions,” said Ankur Jalan, CEO, Golden Growth Fund (GGF). He added that stability and predictability remain important considerations for investors and could support growing interest in alternative investments and income-generating assets.
Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt. Ltd., described the move as a relief for both borrowers and prospective homebuyers, particularly amid rising crude oil prices and supply-chain disruptions. Lalit Parihar, Managing Director, Aaiji Group, said policy continuity helps preserve affordability while supporting confidence among developers, investors and consumers navigating evolving market conditions.
The positive sentiment extended to infrastructure and commercial real estate, where financing costs continue to influence expansion plans and project execution.
Rajan Luthra, CFO, Action Construction Equipment Ltd. (ACE), noted that financing conditions directly affect investment, capacity expansion and project execution across the infrastructure and construction sectors. According to him, policy stability strengthens business confidence and supports continued capital deployment in long-term development projects.
In the commercial real estate segment, Manas Mehrotra, Founder, 315Work Avenue, said stable borrowing costs support leasing momentum and long-term investment decisions. He added that predictable financing conditions allow businesses to make more informed expansion decisions while supporting growth across India’s office-space market.
Umesh Gowda H A, Chairman and Founder, Sanjeevini Group, said the RBI’s neutral stance demonstrates a focus on maintaining stability while addressing inflationary risks arising from geopolitical developments. He noted that a predictable policy framework remains important as developers continue to manage rising construction costs and affordability challenges.
From the consumer perspective, housing advisors believe the decision removes uncertainty around near-term financing expectations. “The RBI’s decision takes much of the guesswork out of the equation for homebuyers,” said Ashish Acharya, Founder and CEO, Propsoch. He pointed out that previous rate reductions have already lowered EMIs and improved affordability, while today’s buyers are increasingly focused on long-term financial planning and broader economic conditions rather than anticipating further monetary easing.
Taken together, industry feedback suggests that the RBI’s latest policy decision is being viewed less as a catalyst for immediate acceleration and more as a measure that reinforces stability. While stakeholders continue to monitor inflation trends, commodity prices and geopolitical developments, the consensus across real estate, infrastructure and investment sectors is that predictable borrowing costs, policy continuity and financing visibility remain essential for sustaining growth momentum in the months ahead.
