In a move that brings a sense of calm to India's bustling property market, the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.5% for the second time in a row. This decision, announced amid global uncertainties like trade tensions and geopolitical shifts, is seen as a smart play to balance growth and inflation control.
For homebuyers and developers alike, it means no sudden jumps in loan costs, helping keep the dream of owning a home within reach. Coming right as the festive season kicks off – a time when families often seal property deals – this stability, paired with recent GST cuts on building materials, could spark fresh demand in housing, especially in affordable and mid-range segments that have been feeling the pinch lately.
Industry leaders across the board have welcomed the RBI's stance, highlighting how it supports steady momentum in real estate without rocking the boat. Anuj Puri, Chairman of ANAROCK, pointed out that this keeps home loan EMIs at current levels, sustaining buyer sentiment even if it doesn't slash affordability overnight. "This stability means existing home loan borrowers won't see any immediate EMI changes, while new borrowers will find loan interest rates holding steady," he said.
Drawing from ANAROCK's latest data, Puri noted that while Q3 2025 residential sales in India's top seven cities dipped 9% year-on-year to 97,080 units, the overall sales value surged 14% to Rs 1.52 lakh crore, showing a shift towards premium and mid-segment homes. He added that the GST rate cut on cement from 28% to 18% could lower construction costs by 3-5%, potentially trimming home prices by 1-1.5% and saving buyers Rs 1-3 lakh, a big win for cost-sensitive segments where affordable housing's share has shrunk from 38% in 2019 to 18% in 2024.
Echoing this optimism, Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd., said the decision brings "stability and continuity to India’s financial ecosystem amid global uncertainties." He believes it will sustain positive vibes in real estate by boosting liquidity and consumer confidence, especially with the festive quarter starting strong and GST reforms adding to the uplift. "The housing sector is likely to continue witnessing steady demand across segments," Aggarwal added, noting how this period traditionally sees a spike in property buys.
Amit Jain, CMD of Arkade Developers Limited, also sees the unchanged rate as a timely stabilizer during the festive rush. "While a rate cut would have further encouraged affordability and investments, maintaining status quo ensures that the ongoing momentum in residential sales remains on track," he remarked, underlining real estate's role in driving GDP and jobs.
Looking at the bigger picture, Amit Bhagat, Co-Founder, CEO and MD of ASK Property Fund, recalled the 100-basis point repo rate cut earlier in 2025, which led to a 58-basis point drop in fresh loans. He praised the RBI's additional steps to cut infrastructure financing costs and ease business operations, saying, "Buyers are expected to remain cautiously optimistic, with strong sentiment for end-use and second homes driven by ongoing infrastructure projects, wealth creation, reduced home loan interest rates, price stabilization, and other government initiatives."
In Mumbai, where housing affordability is a hot topic, Sukhraj Nahar, President of CREDAI-MCHI, called the decision a "cautious yet pragmatic approach" that supports recovery while ensuring stability. With GDP growth revised up to 6.8% and inflation down to 2.6%, he said it gives comfort to borrowers and boosts first-time buyers in areas like Kalyan-Dombivli and Navi Mumbai. "A sustained low-interest regime, complemented by GST-led improvements in consumption and infrastructure-led growth, can accelerate housing penetration," Nahar urged.
Santosh Agarwal, Executive Director and CFO of Alpha Corp Development Limited, emphasized the predictability this brings. "Developers can continue managing capital efficiently without sudden disruptions in financing costs, while homebuyers benefit from steady EMIs," he said, aiding demand in both residential and commercial spaces.
Dr. Samantak Das, Chief Economist and Head of Research and REIS at JLL, viewed the hold as a confident signal rather than a pause. "The potent combination of a rate cut on top of the recent GST reforms would have provided a significant boost to the residential market," he said, but noted the focus on letting previous cuts fully take effect. For commercial real estate, stable costs are key to big investments, he added.
Vimal Nadar, National Director and Head of Research at Colliers India, highlighted the RBI's neutral stance amid global changes, with GDP now projected at 6.8%. "Banks are yet to fully transmit the earlier 100 basis points repo rate reduction... This is expected to benefit the real estate sector, especially homebuyers in the affordable and mid-income segments," he said, adding that GST tweaks on materials like cement could help developers offer better deals.
Anshul Jain, Chief Executive for India, SEA and APAC Office and Retail at Cushman & Wakefield, said the policy reassures on growth and inflation. "We expect borrowing rates—including home loans—to ease further," he noted, helping developers with capital-heavy projects.
For luxury buyers, Amit Goyal, Managing Director of India Sotheby’s International Realty, said steady rates sustain affordability and attract global investors. "This pause is about signaling long-term confidence," he explained.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, tied it to the festive peak. "Predictable EMIs give buyers the confidence to act... Despite global headwinds, domestic housing demand continues to stay resilient," she said.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, while hoping for future cuts to aid affordable housing, acknowledged the need for support to keep the sector's momentum going.
Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, said the announcement, with GST cuts and controlled inflation, "is likely to lift consumer sentiment and may encourage greater demand across key sectors." He expects market momentum to pick up as consumption improves.
As India navigates external challenges, this repo rate stability seems set to nurture real estate's growth, making it a brighter festive season for many aspiring homeowners.
