Godrej Properties, DLF, Lodha, Prestige, Oberoi Realty surge up to 5% as RBI's status quo lifts real estate stocks

Rate-sensitive real estate stocks saw strong rally on Wednesday after the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 5.25% and retained its neutral policy stance, with investors cheering policy stability and the central bank's improved outlook for the economy.

The Nifty Realty index climbed as much as 2.68% during the trade so far, emerging as the top-performing sectoral index on the NSE, as markets welcomed the RBI's decision to extend the pause in interest rates for the fourth consecutive policy review. Industry experts believe the RBI's decision to maintain the status quo will help sustain housing demand and support sales during the upcoming festive season.

The rally in real estate sector was led by Godrej Properties, which surged up to 5.4% to ₹2,143.90. DLF advanced nearly 3% to ₹662.10, while Macrotech Developers (Lodha) gained close to 2% to ₹1,253.50.

Similarly, Oberoi Realty rose around 1.8% to ₹1,810.30 and Prestige Estates Projects added over 1% to ₹1,616.20.

Among other constituents, Sobha climbed about 1.4%, while Phoenix Mills and Aditya Birla Real Estate traded with modest gains. Anant Raj and Brigade Enterprises bucked the trend, slipping marginally during the session.

The broader market also traded higher following the policy announcement. The BSE Sensex surged as much as 438 points, or 0.56%, at 78,867, while the NSE Nifty50 traded above the 24,600 mark. The India VIX fell more than 2%, indicating lower volatility and investor comfort with the RBI's policy outcome.

The rally followed the RBI's Monetary Policy Committee (MPC) decision to unanimously retain the repo rate at 5.25% while maintaining its "neutral" stance. Alongside the policy decision, the central bank raised its FY27 real GDP growth forecast to 6.7% from 6.6% and lowered its CPI inflation projection to 5% from 5.1%.

Industry bodies hail RBI status quo

Shekhar Patel, President of CREDAI, said the RBI's upward revision of GDP growth projections reinforced confidence in India's housing market.

"Real estate is a long-gestation sector where both developers and homebuyers make long-term financial commitments. A stable interest-rate environment enables better planning while sustained economic growth and infrastructure development continue to drive housing demand," Patel said.

Parveen Jain, President of NAREDCO, said the unchanged repo rate would maintain momentum in housing demand and support the upcoming festive season.

"Stable interest rates will benefit both homebuyers and developers while also giving a fillip to construction activity, MSMEs and allied industries linked to real estate," he said.

Lata Pillai, Senior Managing Director and Head – Capital Markets, India at JLL, said the status quo on interest rates was positive for the residential market, especially after healthy housing sales in the first half of 2026.

"With H1 2026 residential sales registering sequential and year-on-year growth, certainty around lending rates for both developers and homebuyers is expected to keep the market resilient. While rising construction costs may put pressure on affordability, particularly in the mid-income segment, attractive borrowing rates should continue to support overall housing demand," she said.

Developers say rate pause will keep housing demand on track

Pradeep Aggarwal, Founder and Chairman of Signature Global (India), said the central bank had adopted a prudent approach in the face of geopolitical uncertainties.

"Policy stability provides much-needed confidence to both businesses and homebuyers. Stable borrowing costs will help sustain housing demand, encourage homeownership and enable developers to continue project execution and launches without disruption," he said.

Jash Panchamia, Executive Director of Jaypee Infratech, said unchanged interest rates would particularly benefit first-time homebuyers.

"Commercial banks are already offering attractive home loan rates, which have significantly improved affordability. A stable interest-rate environment will continue to support demand, especially in the mid-income housing segment where genuine end-user demand remains strong," he said.

Rohit Kishore, CEO of Hero Realty, said predictable borrowing costs would help both consumers and developers plan with greater confidence.

"The RBI's decision provides much-needed stability amid global uncertainties. Stable interest rates support homebuyers, encourage investment activity and contribute to the long-term growth of the real estate sector," he said.

Aman Sarin, Director and CEO of Anant Raj Ltd., said maintaining the status quo was particularly significant given the ongoing geopolitical tensions in West Asia.

"Stability in interest rates provides clarity for businesses and homebuyers alike. For buyers, affordability today is not just about lower rates but also about certainty in monthly repayments. That confidence plays an important role in translating purchase intent into actual home sales," he said.

Mohit Goel, Managing Director of Omaxe Ltd., said the RBI had struck the right balance between supporting growth and containing inflation.

"The rate cuts delivered over the past year have already improved affordability. Maintaining the current rate now provides much-needed stability and certainty for both homebuyers and developers," he said.

Yateesh Wahaal, Director at M3M India, echoed similar views, saying policy continuity would support buyer confidence and allow developers to plan investments and project execution with greater certainty.

Yash Miglani, Managing Director of Migsun Group, said stable lending conditions would encourage homebuyers to take purchase decisions with greater financial clarity while giving developers better visibility for future launches.

Abhay Mishra, CEO and President of Jindal Realty, said the decision reassured both developers and buyers by keeping borrowing costs stable.

"Going ahead, policy support and improved liquidity will be key to unlocking the sector's full potential and ensuring steady, inclusive growth across markets," he said.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)