The real estate sector has welcomed the Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 5.25% and maintain a neutral policy stance, saying the move will provide stability, support buyer confidence, and sustain housing demand amid global economic uncertainty.

The central bank had last reduced the repo rate by 25 basis points (from 5.50%) in December 2025. In the previous bi-monthly policy meeting in April 2026, the apex bank had also left rates unchanged and maintained a “neutral” stance. During FY26, the RBI delivered a cumulative 125 basis-point rate cut, reducing the policy repo rate from 6.50% to 5.25%.

According to industry leaders and players, the pause in policy rates comes at a crucial time when geopolitical tensions, inflation concerns, and volatile global markets continue to weigh on sentiment, making policy continuity essential for both developers and homebuyers.

CREDAI President Shekhar G Patel said the RBI’s decision reflects a calibrated response to prevailing global economic conditions, marked by geopolitical tensions, inflation concerns, and currency volatility. He said the unchanged rate, along with a neutral policy stance, will help sustain market stability and reinforce confidence among developers, investors, and homebuyers.

“The revised GDP growth projection of 6.6% reflects confidence in the resilience of domestic economic activity despite external uncertainties. With borrowing costs remaining steady, housing demand, particularly across mid-income and premium segments, is expected to remain resilient,” Patel said.

He added that while the stance supports growth, continued policy support remains important to address the demand-supply gap in affordable housing.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said the decision will help maintain favourable financing conditions for both homebuyers and developers at a time of global volatility. He added that stable borrowing costs are key to sustaining residential demand, even as a weaker rupee may slightly raise input costs.

“While a weaker rupee could lead to some increase in construction costs through imported materials and inputs, the continuation of a stable interest rate regime should help offset these pressures by supporting buyer confidence and investment activity,” Baijal added.

Signature Global Chairman Pradeep Aggarwal said the policy continuity provides much-needed stability for both consumers and businesses. “For the real estate sector, predictability in interest rates is a key driver of demand, as it directly influences homebuyer sentiment, affordability, and long-term investment planning.”

He added that stable borrowing conditions encourage committed purchase decisions, particularly in the mid-income and premium housing segments.

Echoing similar view, Omaxe Managing Director Mohit Goel said the RBI’s move sends a reassuring signal amid global uncertainty. “Maintaining stability allows businesses and consumers to plan with greater confidence,” he said, adding that steady borrowing costs will support housing demand.

Jaypee Infratech Executive Director Jash Panchamia said stable rates have already improved affordability in recent quarters and encouraged fence-sitters to enter the market. He added that the current stance will help sustain momentum in both end-user and investor demand.

County Group Director Amit Modi said the unchanged rate creates a predictable environment for buyers and developers. He noted that today’s homebuyers are increasingly focused on long-term value and financial security, making stable borrowing conditions an important confidence driver.

Aman Sarin, Director & CEO of Anant Raj, said the move provides much-needed stability at a time when geopolitical tensions in West Asia are increasing cost pressures across industries. He added that home loan rates remain at reasonable levels, supporting housing demand by giving buyers greater certainty over their monthly repayments.