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The Reserve Bank of India's decision to keep the repo rate unchanged at 5.5 percent will keep interest rates stable and sustain the momentum in the housing market, which will gain further as the festival season approaches noted experts.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE noted, "For the real estate sector specifically, this signals stability and offers long-term predictability to developers and homebuyers. The upcoming festive season and range-bound inflation are expected to boost the market momentum further." However, Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said the decision is a classic "wait-and-watch" move. "This move sends a message of stability and confidence in the economy's current trajectory, suggesting that it's resilient enough to handle external pressures without immediate intervention," he said. Stable rates, he added, would support organic growth without over-reliance on monetary easing. However, Anuj Puri, Chairman of ANAROCK Group, raised concerns about the sector's recent performance. "Indian real estate is weathering unrelenting turbulence as Trump's new 25 per cent tariffs and a 20 per cent plunge in housing sales across top metros have dampened sentiment," he said. According to ANAROCK data, only 96,285 homes were sold in Q2 2025, compared to 120,335 a year earlier. Puri noted that a rate cut would have helped boost the struggling affordable housing segment. While the experts from stock markets sees the move as a strategic flexibility. Arsh Mogre, Economist at PL Capital, said "Any fresh easing will now hinge not just on data but on the balance of risks between global trade retrenchment, domestic demand softening, and the rupee's trajectory. In this context, today's decision preserves both credibility and flexibility while acknowledging that we are in an uncertain world," he said. The policy, he added, preserves both credibility and room to act if conditions worsen. (ANI)
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