RBI's status quo on repo rate to boost festive housing demand, homebuyer confidence: Industry experts
New Delhi, August 5
The Reserve Bank of India's decision to keep the repo rate unchanged is likely to support homebuyer confidence, boost festive-season housing demand and investment activity across India's real estate sector as per industry experts.
The apex bank in its Monetary Policy Committee (MPC) meet on Wednesday decided to keep the benchmark repo rate unchanged at 5.25 per cent while retaining its 'neutral' policy stance, stressing the need for greater clarity on the inflation trajectory amid uncertainties surrounding the southwest monsoon, El Nino, geopolitics and global trade policy.
As per industry experts, the rate stability is positive for the real estate sector.
Anshuman Magazine, Chairman & CEO - India, SE Asia, Middle East & Africa, CBRE, said "For real estate, rate stability is a positive signal heading into the festive season, which is typically the strongest period for housing demand in India."
Predictable borrowing costs could boost homebuyer confidence and help developers plan festive-season launches, as per Magazine. "We expect this continuity to support healthy residential sales momentum through the second half of 2026, particularly in the mid and premium segments where affordability is closely tied to interest rate sentiment," he said.
Parveen Jain, President, NAREDCO said, "This decision will also give fillip to construction activity, MSMEs, building material industries and lakhs of workers associated with it. The decision to keep the repo rate unchanged will also have positive impact on festive season sales of under-construction properties.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India said, "For the real estate sector, this policy continuity is expected to sustain housing demand and investment activity, particularly across residential and commercial segments, while supporting the sector's long-term growth trajectory."
Shekhar Patel, President, CREDAI said, "Going forward, continued investment in infrastructure, coupled with stronger policy support for affordable housing, will further strengthen the sector's long-term growth trajectory. Policy stability instils confidence across the housing ecosystem and is particularly significant for an industry where investment and homeownership decisions are made with a long-term perspective."
— ANI
Reader Comments
Good decision by RBI but honestly, the real issue is property prices in metros like Mumbai and Bengaluru. Even with stable interest rates, the down payment itself is beyond reach for most young professionals. Need more affordable housing options and maybe some sops for first-time buyers during the festive season.
As someone who's been tracking the real estate market for years, this status quo is indeed a positive signal. But let's not forget - the repo rate at 5.25% is still on the higher side for an economy aiming for growth. A slight cut would have been even better for the festive demand. Nonetheless, better than an increase! 🇮🇳
Great news for the real estate developers, but what about us who are renting? Rents in Pune and Hyderabad have gone up 15-20% this year! Stable repo rate might help homebuyers, but the rental market needs attention too. Hope the government looks at the bigger picture holistically. 🤔
I appreciate the RBI's cautious approach given the monsoon uncertainty and global tensions. In my 30 years of experience in the construction business, I've seen how policy stability impacts not just homebuyers but also lakhs of workers, MSMEs, and material suppliers. This decision will surely benefit the festive sales momentum. ✨
Stabilizing the repo rate makes sense given the global market conditions and monsoon unpredictability. It gives developers the confidence to launch new projects and buyers the assurance of predictable EMIs. I hope the banking system passes on the benefits through lower spreads to consumers. Good move overall!
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