RBI's status quo on repo rate to boost festive housing demand, homebuyer confidence: 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)