The Reserve Bank of India’s decision to maintain the benchmark repo rate at 5.25% has been welcomed by real estate industry leaders, who believe that the move will help sustain buyer confidence and support housing demand ahead of the festive season.Announcing its monetary policy on Wednesday, the Reserve Bank of India kept the repo rate unchanged and retained its ‘neutral’ stance. The central bank said the decision was guided by the need for greater clarity on the inflation trajectory amid uncertainties surrounding the southwest monsoon, El Nino, geopolitics and global trade policy.Industry stakeholders said the continuation of the current interest rate regime would provide stability to the property market, with several expecting it to encourage both home purchases and investment activity over the coming months.Anshuman Magazine, chairman & CEO – India, SE Asia, Middle East & Africa, CBRE, said stable borrowing costs would come at an important time for the residential market.“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.”He added that predictable borrowing costs would allow developers to prepare festive-season project launches while giving buyers greater confidence. “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 the unchanged repo rate would have a wider impact beyond housing by benefiting construction activity and industries linked to the sector.“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 the policy decision would help maintain momentum across both residential and commercial real estate.“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.”Echoing similar views, Shekhar Patel, President, CREDAI, said policy consistency would strengthen confidence among stakeholders making long-term investment and homeownership decisions.“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.”
