As RBI Keeps Repo Rate Unchanged, Real Estate Majors React with Optimism

New Delhi, October 1, 2025: The Reserve Bank of India (RBI) has kept the repo rate – the rate at which it lends money to banks – unchanged at 5.5 per cent after its first Monetary Policy Committee meeting in the Trump tariff era. The meeting began on Monday, September 29, and RBI Governor Sanjay Malhotra announced on Wednesday that the repo rate remained unchanged.

The Standing Deposit Facility (SDF) rate also remains unchanged at 5.25 per cent. The Marginal Standing Facility (MSF) rate and the Bank Rate continue to be 5.75 per cent.

Moderation in the inflation situation was the man reason behind the unanimous decision of the MPC, with Governor Malhotra saying that the headline average inflation for the year had been revised onward to 2.6 per cent from the 3.7 predicted in June. GST rationalization and a good monsoon are expected to keep things that way.

The MPC did, however, take note of external risks to economic growth. “Whatever are the external head winds, we try to counter them. Ours is primarily a domestic demand-driven economy, so the impact is limited. It’s not as high as some of the other countries as I had earlier mentioned, and the government as well as the RBI, will make all efforts to ensure that whatever are the headwinds, they can be countered. At the same time you are aware that negotiations are still going on, the government is looking at other means of opening up other markets,” Malhotra said. “There have been, there has already been a trade deal with the UK. Negotiations are on with so many other countries, including Oman, EU, etc, that will also open up markets for our exporters. And on the whole, the growth of Indian growth has been quite resilient and we are very hopeful that we will continue to maintain a very high growth trajectory, while maintaining price stability.”

The real estate sector has largely welcomed the RBI decision, with most industry leaders warming up to what they called continuity and stability in the context of a cumulative 100 bps rate cut earlier this year. Some have even called for a further cut in the rate. Here are some reactions of major real estate players:

Mohit Goel, Managing Director, Omaxe Ltd: “The RBI’s decision to maintain policy stability at the onset of the festive season is a timely and growth-supportive move. This period has always been a catalyst for homebuying decisions, and steady interest rates will further strengthen consumer confidence and purchasing power. The recent GST rate cuts add another layer of optimism by improving overall affordability and stimulating spending sentiment. Together, these policy measures create a conducive environment for housing demand, particularly in Tier-II and Tier-III cities where value sensitivity drives decisions. We expect the festive quarter to witness strong traction across residential segments as buyers look to capitalise on favourable market conditions and long-term growth prospects.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.: “We welcome the RBI’s decision to maintain the repo rate at 5.50 per cent, as it brings stability and continuity to India’s financial ecosystem amid global uncertainties. The move is expected to sustain positive momentum across sectors, including real estate, by supporting liquidity, boosting consumer confidence, and encouraging investment activity. With the festive quarter beginning on a strong note and GST reforms further lifting sentiment, the housing sector is likely to continue witnessing steady demand across segments. Traditionally marked by heightened consumer activity, this period creates a favourable environment for property purchases and further strengthens market optimism. Looking ahead, the status quo is set to ensure a stable and balanced growth trajectory for the real estate ecosystem, benefiting developers, buyers, and allied sectors alike.”

Shekhar Patel, President, CREDAI: The RBI’s decision to hold the repo rate at 5.5 per cent gives the housing sector the steadiness it needs amid global uncertainty. Predictable borrowing costs allow buyers to plan long-term and give developers the clarity to progress financing and projects. Recent GST rationalisation has lifted sentiment and increased demand across sectors, reinforcing the positive backdrop. With gold and equity markets volatile, residential property continues to be a dependable store of value. While markets had anticipated a 25-basis-point cut today, we remain hopeful the RBI will deliver a cumulative 50-basis-point easing this fiscal in two tranches, which would further support activity. It is essential that banks pass these benefits to both new and existing borrowers so policy continuity and tax reform translate into sustained demand through the festive season.”

Dr. Niranjan Hiranandani, Chairman, NAREDCO: “The 100 bps reduction in the repo rate earlier this year, coupled with competitive home loan offers by banks at rates as low as 7.30 per cent, has effectively been transmitted across the market—helping homebuyers reduce borrowing costs and boosting affordability. The Reserve Bank’s decision to maintain the repo rate ensures stability, keeping EMIs and interest burdens unchanged, and providing much-needed confidence to homebuyers. This stability, combined with festive offers from lenders and developers amidst sustained housing demand, creates an ideal environment for potential homebuyers to act on their aspirations. The ongoing momentum in the real estate sector, driven by new project launches during the auspicious festive season, is expected to spur economic activity, enhance consumption, and contribute significantly to broader economic growth.”

G. Hari Babu, National President, NAREDCO: “The decision to keep the repo rate at 5.5 per cent alongside the projected real GDP growth of 6.8 per cent is welcome. However, just as the government has boosted various sectors by cutting GST, a reduction in the repo rate is needed to energise the real estate sector. We urge the RBI to consider bringing the repo rate below 5.5 per cent in the next MPC meeting. Lower interest rates will strengthen homebuyers’ confidence, increase housing demand, and particularly benefit the affordable housing segment. Supporting industries linked to real estate such as cement, steel, electricals, piping, and interiors will also see growth. A cut in repo rate will reduce EMIs on housing loans, enhance the purchasing capacity of middle-class families, and give further momentum to government missions like ‘Housing for All.’ Real estate is the second-largest employment-generating sector in the country. Lower borrowing costs will encourage new projects, attract investment, and create large-scale employment opportunities across allied industries as well.”

Anuj Puri, Chairman – ANAROCK Group: “The RBI’s decision to keep the repo rate unchanged at 5.5 per cent maintains home loan EMIs at current levels, which helps sustain buyer sentiment but does not improve housing affordability. This stability means existing home loan borrowers won’t see any immediate EMI changes, while new borrowers will find loan interest rates holding steady. As per latest ANAROCK data, Q3 2025 residential sales in India’s top seven cities dropped 9 per cent year-on-year to 97,080 units, yet overall sales value jumped 14 per cent to INR 1.52 lakh crore, indicating demand shifted towards premium and mid-segment homes. However, the recent GST rate cuts provide significant relief. With GST on cement reduced from 28 per cent to 18 per cent , construction costs are expected to fall by 3-5 per cent, potentially reducing home prices by 1-1.5 per cent for buyers. This reduction could save homebuyers INR 1-3 lakh on purchases, particularly benefiting affordable and mid-segment housing where cost sensitivity is high. ANAROCK data shows that affordable housing’s share has declined from 38 per cent in 2019 to just 18 per cent in 2024, making these GST cuts crucial for reversing this trend. The combination of stable interest rates and lower construction costs creates a favourable environment for housing demand, especially during the ongoing festive season.”

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE: “The RBI MPC’s decision to hold the repo rate at 5.5 per cent reflects a measured approach ahead of the festive season, and amidst volatile global macroeconomic and policy conditions. Along with the recent GST cuts and range-bound inflation, the announcement is likely to lift consumer sentiment and may encourage greater demand across key sectors in the coming weeks. In real estate, it signals a steady growth outlook and reinforces market confidence, offering long-term predictability to developers and homebuyers. Going forward, we expect the consumption to improve and market momentum to accelerate further.”

Vimal Nadar, National Director and Head of Research, Colliers India: “With the RBI maintaining the repo rate at 5.5 per cent for the second consecutive time, monetary policy continues to support stability amidst external trade frictions and fast changing global economic narrative. This pause, along with the Central bank’s ‘neutral’ stance, reflects cautious optimism which factors in the resilient domestic economy and moderating inflation levels. The Central Bank has consequently revised the GDP growth projection upwards by 30 basis points to 6.8 per cent for FY 2025-26. Banks are yet to fully transmit the earlier 100 basis points repo rate reduction and is expected to be completed soon in the ongoing festive season. This is expected to benefit the real estate sector, especially homebuyers in the affordable and mid-income segments. Additionally, the recent GST rationalization in key construction materials such as cement can allow room for developers to lower prices and offer lucrative deals to push housing sales. Overall, timely GST rationalization, stable financing costs and festive discounts augur well for real estate, especially housing, warehousing, retail and hospitality demand.

Anshul Jain, Chief Executive – India, SEA & APAC Office and Retail, Cushman & Wakefield: “The RBI policy offers reassurance on India’s economic growth outlook and inflation, both of which remain strong and stable. This creates a solid foundation for growth amid global trade and geopolitical uncertainties. While the repo rate stays at 5.5 per cent, the focus of the central bank is now on better transmission. We expect borrowing rates—including home loans—to ease further, and lending to listed debt securities like REITs to improve. The RBI governor’s message is positive, boosting confidence in India’s real estate growth story. Predictable borrowing costs will help developers plan capital-intensive projects and drive investment across real estate and infrastructure.”

Manoj Gaur, CMD, Gaurs Group: “We welcome the RBI’s decision to maintain the status quo on repo rate. Coupled with a massive GST reduction, thrust on infrastructural development, and the country’s economic growth, this will boost housing demand. The real estate sector is going through a very buoyant stage in the entire country and this status quo will surely maintain that streak. The message of a stable interest regime also brings anticipation for the future, bringing further rate cuts and sustaining the sector’s growth.”

Sahil Agarwal, CEO of Nimbus Realty: “A heartening decision that is set to lift the real estate market, already buoyed by the festive season spirit. Moreover, the RBI’s announcement to keep the repo rate unchanged provides a significant psychological boost, signaling confidence in India’s economic growth story and encouraging both homebuyers and developers to engage actively during the festive quarter. This stability, combined with the festive buying momentum, is likely to drive stronger sales and renewed interest across residential and commercial segments.”

Amit Modi, Director, County Group: “The RBI’s announcement to continue with the existing 5.50 per cent repo rate (for close to 10 months) will boost the real estate market and aid its growth. Since we are in the thick of the festival season, the buyers, who were on the fences, will respond favourably and continue with their real estate purchases. It also signals RBI’s confidence in the Indian growth story, which again will ultimately benefit the real sector.”

Kushagr Ansal, Director of Ansal Housing: “The RBI’s decision to maintain the repo rate and keep policy rates unchanged is a positive step. This action provides much-needed stability to the real estate market, especially during the festive season when homebuying is predicted to increase. Prospective purchasers will feel more comfortable taking out home loans and making prompt investment decisions since EMIs are expected to stay constant.”

Deepak Kapoor, Director, Gulshan Group: “By keeping the repo rate unchanged, the RBI has signalled an environment of stability that is crucial for long-term investments like housing. At a time when consumer sentiment is already on the rise due to festive cheer and favourable government policies, this step will provide the additional push needed for sustained demand in the real estate sector. The combined effect of GST rationalisation, accelerated infrastructure development, and India’s steady economic growth, while adding to this momentum, will also benefit the real estate sector.”

Prakash Mehta, Chairman & Managing Director, Ocus Group: “By holding the repo rate steady at 5.5 per cent and maintaining a neutral stance, the RBI has reinforced its balanced approach toward sustaining growth while keeping inflation in check. For real estate, this continuity offers a stable policy environment, instills confidence among institutional and private investors, and ensures consistent momentum for infrastructure-led development across diverse asset categories.”

Vishal Sabharwal, Head Sales, Orris Group: “The RBI’s decision to maintain the repo rate at 5.5 per cent ensures stability in loan costs, giving buyers greater confidence in making investment decisions. For first-time homebuyers, EMIs continue to be the deciding factor, and this stability supports consistent affordability. With the festive season already driving positive sentiment, we expect demand to remain strong, with heightened interest translating into robust market activity.”

Dr. Gautam Kanodia, Founder, KREEVA and Kanodia Group: “RBI keeping the repo rate at 5.5 per cent sends a clear signal of continuity and confidence. Having cut rates by 100 basis points since February, the central bank has created a conducive financing environment that continues to keep borrowing costs manageable and sentiment upbeat. Even without an additional cut this time, the steady rate provides buyers and developers with the clarity they need during the festive season, when market activity traditionally intensifies. This stability not only reinforces confidence in housing as a resilient investment avenue but also sets the stage for sustained momentum in the months ahead.”

Uddhav Poddar, CMD, Bhumika Group: “The RBI’s decision to hold the repo rate at 5.50 per cent reflects a measured and pragmatic approach, keeping the policy stance unchanged and the real estate sector stable. With inflation easing to multi-year lows and monetary transmission showing improvement, the central bank has rightly chosen to evaluate the cumulative impact of past rate cuts. By maintaining a neutral stance, the RBI retains the flexibility to respond to evolving conditions. For businesses like ours in the real estate sector, this stability provides confidence, particularly as we head into the festive quarter, supporting planning and sustained growth.”

Ankit Kansal, Managing Director of 360 Realtors: “The RBI’s decision to keep the repo rate at 5.5 per cent brings stability, but there was also scope to consider a modest reduction of 25–50 basis points. Given that food inflation is still declining and retail inflation is currently at its lowest level in six years, strong economic activity and a favorable monsoon are projected to significantly reduce overall inflationary pressure. owth engine for the Indian economy, real estate requires aggressive steps to maintain demand, particularly during a period when consumer mood may be impacted by global uncertainty and job concerns in industries like IT. A thriving real estate industry is essential to the whole economy since it not only supports economic expansion but also creates millions of employment and hundreds of related industries.”

Saurab Saharan, Group Managing Director, HCBS Developments: “With the RBI holding the repo rate steady, the real estate sector, especially the luxury housing segment, is well-positioned to build on its recent surge in demand. Rate stability offers buyers the assurance to proceed with high-value investments, while giving developers the clarity needed to align new launches with evolving market appetite. Although a rate cut would have provided an added boost through lower EMIs. The combination of stable financing costs and the recent GST reduction will further create a strong foundation for purchases this festive season. Together, these factors are set to reinforce momentum in premium real estate, sustaining its growth trajectory over the coming quarters.”

Umang Jindal, CEO, Homeland Group: “The RBI’s decision to keep the repo rate unchanged brings stability at a time when the festive season usually drives strong housing demand, not just in metros but increasingly in Tier-2 cities as well. Maintaining the current rate keeps borrowing costs predictable, encouraging buyers across emerging markets to invest in homes during this auspicious period. While it may not provide immediate financial relief, it allows developers to confidently advance ongoing projects and plan launches aligned with festive demand. The unchanged repo rate reflects a careful balance — sustaining affordability, supporting sentiment, and enabling steady growth in both Tier-I and Tier-II real estate markets.”

Manit Sethi, Director, Excentia Infra: “The RBI’s decision to maintain the repo rate at 5.5 per cent demonstrates a stable and forward-looking monetary approach. For the real estate sector, this consistency fosters confidence among both buyers and developers, ensuring borrowing costs remain manageable and investments stay attractive. With the festive season underway, such stability is likely to boost buyer activity and drive stronger sales momentum. Predictable rates are vital for a sector that thrives on trust and long-term planning, supporting sustained growth well beyond the festive period.”

Sanjay Sharma, Director of SKA Group: “The festive season from Navratri to Diwali has traditionally been the most active period for bookings. With the RBI maintaining the repo rate at 5.5%, the stability in EMIs ensures that buyers have clarity while planning big-ticket investments. Many fence-sitters are expected to make a decision during this period, which will bring renewed energy to the market and accelerate project sales.”

Pankaj Jain, Founder and CMD, SPJ Group: “The RBI’s decision to keep the repo rate unchanged at 5.5 per cent comes at a crucial time when festive demand is already propelling the realty market sentiments. With stability in borrowing costs, both end-users and investors can plan confidently, particularly among aspirational buyers who are driving market growth. The policy continuity not only sustains momentum in ongoing projects but also strengthens market sentiments for both developers and the buyer community for new launches and offerings in emerging micro-markets. With festive sentiment high and financing conditions steady, the real estate sector is well-positioned to capture strong demand towards the year-end.”

Gurpal Singh Chawla, Managing Director, TREVOC Group: “More than keeping the interest rate low, the decision to hold the repo rate steady, signals RBI’s confidence in India’s growth, which is crucial both for developers and homebuyers. It ensures the competitiveness of the housing market while reflecting RBI’s commitment to nurturing economic momentum. In a landscape shaped by global uncertainties, this consistency offers much-needed reassurance to investors and end-users alike. Coupled with GST reduction and the government’s thrust on infrastructure, the impact on real estate demand will be significant and lasting.””

Sunil Kumar Jain – Chairman, One Group: “With the RBI keeping the repo rate steady at 5.5 per cent, homebuyers can now look forward to stable home loan costs—a key factor supporting affordability and boosting confidence in property purchases. This stability comes at a time when demand for luxury residential properties is rising not just in metros but also in Tier-2 cities, where high-quality developments are increasingly matching the lifestyle offerings of larger urban centres. For developers, predictable borrowing costs provide the clarity to plan projects that align with evolving buyer expectations. Overall, the steady repo rate reinforces both demand and investment sentiment, further fueling the growth of luxury housing across India’s emerging and established markets.”

Sandeep Chhillar, Founder and Chairman, Landmark Group: “With repo rate unchanged, RBI brings a welcome layer of stability to the housing market. Buyers now have the reassurance of steady EMIs, while the GST reduction further sweetens affordability. Together, these measures create a timely opportunity for premium home purchases, allowing developers to capitalize on heightened festive sentiment.”

Prateek Tiwari, MD, Prateek Group: “The RBI’s decision to hold the repo rate steady at 5.5% comes at a time of an evolving economic environment. For the housing sector, this consistency helps anchor sentiment, reassuring buyers while keeping financing conditions supportive. Although a rate cut could have further reduced home loan costs, the current environment—strengthened by the recent GST reduction—still encourages both first-time buyers and end-users to act. Developers, meanwhile, are expected to remain bullish on new launches, particularly in high-demand corridors. Overall, the move reinforces confidence in real estate while adding momentum to festive season activity.”

Ashwinder R Singh, Chair, CII Real Estate; Vice Chair, BCD Group ; Advisor, NAR-India: “RBI’s pause at 5.50 per cent reflects thoughtful discipline — letting past rate cuts permeate, while staying alert to inflation and external risks. For real estate, the status quo is positive: home loan rates remain stable, which sustains demand momentum and gives both developers and buyers more confidence.”

Ashwani Kumar, Pyramid Infratech: “By maintaining a steady policy stance, the RBI has reinforced confidence in the real estate sector, providing much-needed clarity for both buyers and developers. Stable repo rates translate directly into predictable home loan EMIs, making property purchases more accessible, particularly for first-time and premium buyers. With the festive season underway, this stability is likely to accelerate sales and support stronger demand across residential and luxury segments. Overall, the RBI’s measured approach lays a solid foundation for sustained market growth while unlocking new investment opportunities.”

Rajjath Goel, Managing Director, MRG Group: “By holding the repo rate at 5.5%, the RBI has reinforced its focus on balancing growth and stability. In Gurugram’s luxury housing market, sentiment plays a big role. The cumulative 100 bps cut this year was already a confidence booster, particularly for premium launches. The decision signals confidence in India’s economic fundamentals and is expected to anchor momentum in residential markets well into 2026.”

Sakshee Katiyal, Chairperson, Home & Soul: “RBI deciding to maintain the repo rate at 5.5 per cent comes at an opportune moment. The accommodative policy stance throughout the year has already eased borrowing costs and improved liquidity, giving homebuyers the confidence to plan investments. This stability, combined with the recent GST rate cut, creates a favorable environment for property purchases. Entering the festive season, buyers and developers are well-positioned to act decisively, boosting sales and sustaining momentum across residential and luxury segments.”

Piyush Kansal, Executive Director, Royale Estate Group: “With the RBI holding the repo rate steady at 5.5 per cent, homebuyers can now plan their property investments with greater confidence. The combination of stable home loan rates and the recent GST reduction make this festive season an ideal window for purchases, particularly in emerging Tier-2 markets where luxury housing is gaining traction. This move will improve affordability, encouraging buyers to enter the market decisively.”

Ishaan Singh, Director, AIPL: “The RBI’s decision to hold the repo rate steady at 5.5 per cent signals a calculated effort to sustain momentum in the economy, with far-reaching consequences for residential real estate. By ensuring stability in borrowing costs, the move will instill greater confidence among both homebuyers and developers—an especially critical factor at a time when global markets remain volatile. Beyond monetary policy, it reflects the government’s sensitivity to consumer and investor sentiment, laying the groundwork for healthier demand cycles. This stability, coupled with GST rate cuts, is expected to anchor real estate’s growth trajectory and catalyze long-term sectoral resilience.”

Shaurya Garg, Director of Marketing and Sales, Northwind Estates: “The RBI’s decision to keep the repo rate unchanged at 5.5 per cent sends a strong signal of policy stability at a crucial time for the economy. With the festive season setting in, this stability in EMIs allows homebuyers to plan with greater certainty, while developers can sustain their current growth momentum. The assurance of steady borrowing costs is likely to translate into healthy demand and continued confidence in the real estate sector.”

Salil Kumar, Director – Marketing and Business Management, CRC Group: “The RBI’s decision to maintain the status quo keeps both residential and commercial real estate stable and unchanged. By adopting a balanced stance, the central bank leaves room for optimism around future rate cuts, which could further boost market sentiment. For homebuyers, steady interest rates ensure continued affordability and confidence in making purchase decisions. In the commercial segment, predictable borrowing costs provide clarity and are likely to attract investor interest, particularly in office and mixed-use assets. We hope the RBI continues its measured approach, supporting long-term growth across all asset classes.”

Ashok Singh Jaunapuria, MD & CEO, SS Group: “With the festive season underway, the RBI’s decision to keep the repo rate unchanged at 5.5% offers reassurance of stability to both buyers and developers. While a rate cut would have been a great addition, the current backdrop of steady EMIs, combined with recent measures like GST reductions, already creates a conducive environment for property purchases. This balance of macro-level stability and festive optimism is likely to sustain momentum in the real estate sector.”

Dr. Vishesh Rawat, VP & Head of Marketing, Sales & CRM, M2K Group: “The RBI’s decision to keep the repo rate unchanged at 5.5 per cent with a neutral stance reflects a stable and balanced policy outlook. For real estate, such continuity is reassuring as it keeps home loan rates steady, encouraging affordability at a time when festive demand is picking up. This stability not only boosts sentiment among first-time and mid-income buyers but also gives confidence to developers and investors to plan long-term. The timing of this move is particularly positive, as the festive season is traditionally a strong period for housing sales.”

Ajay Tyagi, Chief Sales Officer, Better Choice Realtors: “In the backdrop of global uncertainties, the RBI’s decision to hold the repo rate at 5.5% reinforces stability at a time when it matters most. For the luxury housing sector, particularly the premium segment, this move ensures buyers can borrow with confidence during the festive season—a period traditionally associated with heightened property purchases. When combined with the recent GST reduction, stable rates create a powerful incentive for both end-users and investors to act decisively.”