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.
Shekhar Patel, President, CREDAI, said: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability and reassurance for the real estate sector. Given the prevailing global uncertainties, maintaining the status quo sends a positive signal of confidence and policy continuity. Real estate is a long-gestation sector, and homebuyers make long-term financial commitments. A stable interest-rate environment enables both developers and buyers to plan with greater certainty. The RBI’s upward revision of India’s GDP growth projection to 6.7% underscores the resilience of the Indian economy despite external headwinds. Sustained economic growth, employment generation and continued infrastructure development remain the strongest drivers of housing demand. Despite supply-side disruptions in recent months due to the situation in West Asia, the housing market has continued to demonstrate remarkable resilience, reflecting strong underlying demand. Stable borrowing costs further support this momentum by providing financing certainty and facilitating timely project execution. 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.”
Manoj Gaur, CMD, Gaurs Group, said: “We welcome the RBI’s decision to maintain the repo rate. In the current global environment, policy continuity carries its own significance. Real estate is a long-gestation sector where stability in financing conditions helps both developers and homebuyers plan with greater confidence rather than react to short-term developments. What is equally encouraging is the confidence the RBI has expressed in the resilience of the Indian economy. Infrastructure-led growth continues to reshape housing demand across NCR, and end-user interest has remained steady despite external uncertainties. A stable interest-rate environment allows this momentum to continue while providing the confidence needed for timely project execution and long-term investment.”
Uddhav Poddar, CMD, Bhumika Group, said: “The RBI’s decision to maintain the repo rate at 5.25% reflects a measured response to evolving global and domestic conditions, which is highly reassuring for the real estate sector. More significant is the upward revision in FY27 GDP growth to 6.7%, signalling confidence in the resilience of the Indian economy despite continuing geopolitical uncertainties. For the real estate sector, such policy continuity provides stability in financial planning while supporting sustained housing demand and project execution.
Amit Modi, Director, County Group, said: “Keeping the repo rate stable at 5.25% shows the RBI’s focus on maintaining macroeconomic balance while closely monitoring global developments. Meanwhile, such policy consistency provides more certainty for planning in the real estate sector. Buyers have become much more deliberate in their buying decisions, placing equal importance on lifestyle upgrades, enduring value and financial security. In this context, stable borrowing conditions become an important confidence driver. Combined with infrastructure-led growth and the rising preference for organised developments, these factors are expected to sustain healthy residential demand in the coming quarters.”
Prateek Tiwari, Managing Director, Prateek Group, said: “Maintaining the policy rate at 5.25% signals the RBI’s intent to strike a balance between inflation management and growth preservation. While rising input costs remain a concern, especially in construction, a stable rate environment helps prevent any immediate shock to home loan affordability. This is particularly important for end-users, whose purchase decisions are highly sensitive to borrowing costs. The neutral stance further reinforces predictability, allowing developers to plan launches and pricing strategies with greater clarity, thereby supporting sustained demand across key residential micro-markets.”
Sanjay Sharma, Director, SKA Group, said: “The RBI’s decision to maintain the repo rate at 5.25% amidst inflationary risks stemming from global crude price movements shows a continued commitment to a patient and data-driven policy approach. This stance helps to keep borrowing costs steady and keep liquidity conditions accommodative for homebuyers and developers. A rate cut might have given housing demand a further boost, but staying the course looks like a reasonable approach amid the evolving macro picture. “Sustained end-user demand and infrastructure-led development will continue to be the key drivers of growth for the real estate sector going forward.”
Yash Miglani, Managing Director, Migsun Group, said: “The RBI decision to keep the repo rate unchanged at 5.25% sends a reassuring signal to the housing sector at a time when end-user demand continues to remain healthy. Stable lending conditions encourage homebuyers to move ahead with greater financial clarity, while developers gain better visibility for project planning and future launches. Supported by strong infrastructure development across NCR, the market is well placed to sustain steady residential growth over the coming quarters.”
Neeraj Gulati, Managing Director, Assotech, said: “The decision of the RBI to keep the repo rate unchanged at 5.25% creates a conducive policy environment for the housing market. Tier 2 markets, in particular, are likely to benefit from greater certainty around borrowing costs. Demand in such cities is end-user driven, and certainty with regard to borrowings forms an important factor in determining the long-term ownership decision. The current policy also allows the developers to launch their projects in a more disciplined manner, with the supply kept in align with market needs. As infrastructure and economic opportunities continue to improve across emerging cities, Tier 2 residential markets are well placed to witness steady and sustainable growth.”
Sehaj Chawla, Managing Director, TREVOC Group, said: “An encouraging step for the real estate sector. The announcement reinforces an important message: the RBI remains confident about the resilience of the Indian economy and has decided to maintain the status quo on the repo rate. This approach is well suited to a sector like real estate, where buying decisions are rarely driven by short-term interest-rate movements alone. Strong domestic demand, improving economic prospects and a stable financing environment should continue to support healthy momentum across the residential market.”
Gurinder Bhatti, Chairman and Managing Director, GB Realty, said: “By maintaining the repo rate at 5.25%, the RBI has ensured stability at a time when the housing sector continues to benefit from healthy end-user demand and improving buyer sentiment. Punjab is no longer solely an NRI-driven market as we are witnessing a growing base of local homebuyers looking to upgrade to organised, high-quality developments. Stable interest rates provide predictability in borrowing costs, strengthen buyer confidence, and encourage long-term investment in housing. Coupled with accelerating infrastructure development and rapid urbanisation, Punjab is well positioned to emerge as one of North India’s most promising real estate destinations. We believe this policy continuity will further support sustainable growth across the residential sector.”
Mayank Jain, CEO, KREEVA, said: “Consistency in interest rates has quietly become one of the biggest contributors to the housing market’s resilience. By keeping the repo rate unchanged, the RBI has ensured that buyers and developers can continue making long-term decisions without having to revisit their financial assumptions. The strength of the residential market over recent quarters suggests that demand is increasingly being driven by product quality, location and long-term value. Stable borrowing conditions simply allow those underlying drivers to remain in focus.”
Ashwani Kumar, Pyramid Infratech, said: “The RBI’s decision to hold the repo rate at 5.25% despite emerging inflationary pressures reflects a calibrated and forward-looking approach. In the current environment, where global crude prices remain volatile, a neutral stance allows policymakers to closely track inflation transmission without disrupting domestic demand cycles. This stability in interest rates is crucial for the housing sector, boosting homebuyers’ confidence and ensuring a steady sales momentum. At the same time, it enables developers to continue with prudent financial planning, helping keep project execution timelines in sync with changing market conditions.”
Preksha Singh, CEO, Agrasheel Infra, said, “The RBI’s decision to keep the repo rate unchanged provides a stable environment for both homebuyers and developers. Housing purchases are long-term financial commitments, and consistency in borrowing costs helps buyers plan with greater confidence while allowing developers to move ahead with project execution and future launches. With the RBI also expressing confidence in the economy despite global uncertainties, the residential market remains well placed to sustain its growth momentum.”
Azad Ahmad Lone, President, Biigtech, said: The RBI’s decision to maintain the repo rate at 5.25% shows a calibrated policy approach that provides businesses with greater visibility for long-term planning. A predictable financing environment encourages fresh investments, supports enterprise expansion and strengthens capital allocation across growth-oriented sectors. As technology continues to play a larger role in India’s economic transformation, such policy consistency will help sustain business momentum and investment activity.
Kushagr Ansal, Director, Ansal Housing, said, “Long-term homeownership decisions are closely linked with financial certainty, making the RBI’s decision to retain the repo rate at 5.25% a welcome development for the residential market. The current interest rate environment allows housing demand to progress steadily while giving the sector greater visibility for future growth. Continued urban expansion and infrastructure investments further strengthen the outlook for organised residential development.”
Harvinder Singh Sikka, Chairman, Sikka Group, said: India’s resilient economic outlook continues to provide a strong foundation for real estate, and the RBI’s decision to maintain the repo rate at 5.25% adds further certainty to that trajectory. A measured monetary policy encourages long-term capital deployment across residential and commercial assets alike. This approach is expected to deepen investor participation and sustain the sector’s growth over the coming quarters.
Mrinal Mittal, Managing Director, Homeland Group, said, “The RBI’s decision to maintain the repo rate at 5.25% is a welcome move as it provides policy stability and reinforces confidence across the real estate sector. A stable interest rate environment is crucial for homebuyers, as it preserves affordability and encourages long-term purchasing decisions. We are already witnessing strong end-user demand, particularly in Punjab and the Tricity region, where improved infrastructure, rising incomes and evolving lifestyle aspirations are driving the next phase of residential growth. Policy continuity also enables developers to plan investments and execute projects with greater certainty. We believe the sector is well-positioned to sustain its growth momentum, supported by stable financing conditions and increasing demand for quality, future-ready developments.”
Mitul Jain, MD, SPJ Group, said: “The RBI’s decision to keep the repo rate unchanged at 5.25% while retaining a neutral stance is a balanced approach amidst the evolving dynamics of inflationary pressures and global uncertainties which continue to shape the economic outlook. For homebuyers, it brings the stability and positivity as home loan interest rates and EMIs are expected to remain largely unchanged. While, we believe a rate cut could have further improved affordability and encouraged millions of first-time homebuyers, the policy continuity provides confidence to both buyers and developers, enabling informed long-term decisions. With the festive season approaching with the onset of next quarter, a stable interest rate environment is expected to sustain positive momentum in the residential real estate market.”
Tejpreet Singh Gill, Managing Director, Gillco Group, said: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability for the housing market. With home loan rates expected to remain stable, buyers can plan their purchases with greater confidence, while developers can continue investing in project execution and future developments. The residential market has remained resilient, with housing demand continuing to be driven largely by end-users despite global economic uncertainties. In Punjab, improving infrastructure, expanding urban centres and a growing preference for organised townships and integrated communities are further strengthening buyer confidence. We believe this policy continuity will help sustain the sector’s growth momentum in the months ahead.”
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.
