RBI Keeps Repo Rate Unchanged at 5.25% as Real Estate Sector Welcomes Policy Stability Ahead of Festive Season
New Delhi, August 5, 2026: Certainty has arrived for India’s real estate sector just in time for its biggest selling season. The Reserve Bank of India has held its repo rate at 5.25% for the fourth consecutive time, and developers are reading the pause as a green light heading into the festive months. The decision lands at a delicate moment — June retail inflation touched an 18-month high, yet the RBI chose stability over action. For a sector where sentiment moves with borrowing costs, that steadiness is the point. Industry leaders believe the decision reflects a balanced approach amid global economic uncertainty, inflationary pressures and geopolitical risks, while reinforcing confidence in India’s economic resilience. Here is what industry leaders of real estate sector say about keeping the repo rate steady at 5.25%:
Amit Goyal, Managing Director, India Sotheby’s International Realty, said: “This is the last policy review before the festive season, giving homebuyers and developers greater certainty to plan purchases and launches.” He noted that stable EMIs matter most “as some overheated markets begin to see demand moderate.”
Mohit Goel, Managing Director, Omaxe Ltd., said: “Maintaining the current rate now provides much-needed stability and certainty for both homebuyers and businesses.” He noted that previous rate cuts had already improved affordability and strengthened buyer confidence, while the current policy continuity will support India’s housing market, backed by infrastructure development, urbanisation and steady end-user demand.
Yateesh Wahaal, Director, M3M India, said: The unchanged repo rate “provides much-needed stability to the real estate sector,” ensuring predictable home loan interest rates, helping sustain buyer confidence, and enabling developers to plan investments and execute projects with greater certainty.
Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd., said: The decision “reflects a prudent and balanced approach,” with inflation staying within the central bank’s comfort range. Policy stability, combined with healthy consumer sentiment, will continue to encourage homeownership, support project execution and facilitate new residential launches.
Parveen Jain, President, NAREDCO, said: Stability will “give a fillip to construction activity, MSMEs, building material industries” and lift festive-season sales of under-construction homes while benefiting the wider construction ecosystem.
Anupam Rastogi, Co-Founder & CBO, Square Yards, said: Some lenders are offering home loans “as low as about 7.25%,” keeping ready-to-move-in and near-completion properties especially attractive for buyers seeking assurance on delivery. Stable borrowing costs, competitive home loan rates and flexible payment plans are expected to strengthen buyer sentiment.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said: Rate stability is “a positive signal heading into the festive season,” with commercial fundamentals remaining strong, office demand robust, and warehousing and data centres continuing to attract capital.
Dr. Amit Goenka, Chairman & MD, Nisus Finance, said: Predictable borrowing costs “improve yield visibility and asset valuations for REITs,” aiding long-gestation projects and offering greater certainty to developers, institutional investors and REITs by improving capital deployment and borrowing predictability under the government’s ₹12.22 lakh crore capital expenditure push.
Kamlesh Thakur, President, NAREDCO Maharashtra, said: “As inflation moderates in line with the RBI’s expectations, there could be room for a more accommodative monetary policy,” pointing to the upward revision of India’s growth forecast to 6.7% as a sign of resilience despite global uncertainties.
For now, the industry seems content with a steady hand. In a year defined by global volatility, a rate that simply stays put may be exactly the confidence the market needs to close the year strong. With the festive buying season approaching, the RBI’s decision is expected to maintain positive market sentiment and support sustained momentum across India’s residential and commercial real estate sectors.
