The RBI today kept the repo rate steady at 5.50% while raising FY26 GDP growth to 6.8%, signaling stable borrowing costs for homebuyers. With GST rationalization and US tariff changes also shaping market sentiment, the real estate sector is poised to benefit from heightened festive-season demand.
Experts say stable rates combined with growth optimism could give a timely push to residential and commercial property transactions.
Mr. Prashant Sharma, President, NAREDCO Maharashtra
“The RBI’s decision to keep the repo rate unchanged at 5.5% with a ‘neutral’ stance is a welcome step for the real estate sector, especially during the festive season when home buying sentiment is at its peak. The rationalization of GST will provide a much-needed push to consumer confidence, offsetting inflationary concerns arising from global trade headwinds such as the additional US tariffs. With GDP growth projections revised upward to 6.8%, the overall economic outlook remains positive, and this will translate into healthier housing demand across segments.”
Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The RBI’s status quo on repo rates for the second consecutive time ensures stability in borrowing costs, which is crucial during the ongoing festive season — traditionally the strongest period for home sales. Combined with GST rationalization, buyers are likely to benefit from a more transparent and cost-effective home ownership journey. Even though global pressures such as US tariffs may pose inflationary risks, India’s strong domestic fundamentals and higher GDP forecast will continue to drive the real estate market forward.”
Mr. Vikas Jain, CEO, Labdhi Lifestyle and President, NAREDCO Maharashtra NextGen
“The RBI’s unchanged repo rate is in line with market expectations and will help sustain housing demand during the festive season. Developers can now focus on passing on benefits of GST rationalization to buyers, which will further stimulate consumption. India’s resilience and upward GDP growth outlook signals a conducive environment for long-term real estate investments.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“The RBI maintaining the repo rate at 5.5% is a steadying move that brings confidence to homebuyers at a time when festive demand is peaking. GST rationalization is an added advantage as it lowers cost pressures, making homes more affordable. Despite global uncertainties like US tariffs, the central bank’s upward revision of GDP growth reflects the strength of India’s economy and will encourage more buyers to convert aspirations into purchases.”
. Mr Vimal Nadar, National Director and Head of Research, Colliers India
With the RBI maintaining the repo rate at 5.5% 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% 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.
Ramani Sastri – Chairman & MD, Sterling Developers
The real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. As the sector continues to benefit from improved buyer sentiment and strong housing demand, we were looking forward to a supportive stance from the RBI in the monetary policy during the ongoing festive season. A rate cut at this juncture would have been highly encouraging for homebuyers and developers alike, potentially boosting affordability and further investments in the sector. However, the decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms. We are hopeful that the real estate sector’s growth momentum will continue to accelerate further and drive long term momentum for home ownership and contributing positively to overall economic expansion. As we move ahead, we would definitely welcome further rate cuts in the near term to build confidence in the market.
Mr Amit Goyal, Managing Director, India Sotheby’s International Realty
The RBI’s decision to hold the repo rate at 5.50% offers stability at a time when both homebuyers and investors are seeking clarity. For end-users, steady borrowing costs help sustain affordability and confidence, particularly as demand for larger, lifestyle-driven homes continues to grow. For investors, predictability in monetary policy reinforces India’s appeal as a resilient, high-growth real estate market, especially in the luxury segment, where global capital is showing rising interest. This pause is about signaling long-term confidence — an opportunity for the industry to consolidate demand, innovate, and deliver with greater consistency.
Lincoln Bennet Rodrigues, Chairman and Founder, Bennet & Bernard, well known in the world of Premier Luxury Homes.
The RBI’s decision of status quo doesn’t come as a surprise. However, lower borrowing costs would have positively influenced affordability and purchasing decisions, particularly in the budget and mid-income segments. For luxury real estate, interest rates aren’t the main trigger and its direct impact on the segment is limited. Over the past few years, there has been a quiet transformation in the way people approach homeownership, especially at the premium end of the market. In a market like Goa, demand from NRIs, HNIs, and serious investors is unlikely to slow. Goa is no longer viewed only as a seasonal retreat and it has grown into an address with global appeal, attracting people who value culture, heritage, exclusivity, wellness, and long-term legacy, reflecting a deeper shift in the emotional and lifestyle priorities of HNI’s in India. The encouraging response we are witnessing in recent times reaffirms Goa’s position as one of India’s most desired luxury markets that is unique and unparalleled, and the momentum from here is set to grow stronger in the near future.
Mr. Dhruman Shah, Promoter, Ariha Group
“The RBI’s neutral stance and decision to hold the repo rate unchanged bodes well for the real estate sector. The festive season is a crucial window for developers, and stability in borrowing rates combined with GST rationalization will help in faster conversions. This stability not only boosts buyer confidence but also enhances affordability, which in turn will accelerate sales velocity and support developers in achieving stronger traction for their projects.”
Mr Piyush Bothra, Co-Founder & CFO, Square Yards
The decision to keep the repo rate unchanged at 5.5% came as no surprise, given the crosscurrents in the economy. On the domestic front, the growth outlook remains firm with the international agencies such as the IMF revising forecasts upward, inflation largely contained, and GST 2.0 reforms adding further impetus. The 100 basis points of easing delivered earlier in the year are still working their way through the system. At the same time, global risks persist with US tariffs, tighter immigration policies, and a weaker rupee creating pressure. In housing, lower home loan rates alongside the festive season are driving a visible pickup in demand. While another cut would have added momentum, the case for further easing toward year-end remains strong.