Business EconomyPosted at: Jun 5 2026 3:16PM


Real estate sector sees stability and growth opportunities as RBI maintains status quo on rates

Sourav Shekhar
New Delhi, Jun 5 (UNI) The Reserve Bank of India's decision to keep the repo rate unchanged at 5.25 per cent while maintaining a neutral monetary policy stance has been widely welcomed by the real estate sector, with industry leaders saying the move will strengthen homebuyer confidence, support demand, and provide a stable environment for long-term growth.
With global markets grappling with geopolitical tensions, inflationary pressures, and financial uncertainty, developers and industry bodies believe the RBI's measured approach will help preserve stability in one of the country's key economic sectors.
CREDAI President Shekhar G Patel said the decision reflects a calibrated response to the prevailing global economic environment. According to him, policy continuity will be beneficial for the real estate sector and help sustain overall market stability. He noted that the RBI's revised GDP growth projection demonstrates confidence in the resilience of domestic economic activity despite external challenges.
Patel said stable borrowing costs are expected to support housing demand, particularly in the mid-income and premium segments, while the policy also strikes a balance between supporting growth and keeping a watch on inflationary risks. He emphasized that infrastructure expansion and the growing preference for organised developments across major cities have kept the sector's growth prospects stable and disciplined. The neutral stance, he added, is likely to further strengthen the confidence of investors, homebuyers and end-users.
Sharing a similar outlook, Amit Modi, Director of County Group, said the continuation of the repo rate at 5.25 per cent provides a predictable environment for both consumers and developers. He observed that homebuyers today are making more thoughtful purchasing decisions focused on lifestyle upgrades, long-term value, and financial security. In such a scenario, stable borrowing conditions serve as a significant confidence booster even in the absence of an immediate rate cut.
Modi added that the real estate sector has already built strong momentum through infrastructure-led growth and increasing demand for organised developments, trends that are expected to continue supporting the market in the coming quarters.
Mitul Jain, Managing Director of SPJ Group, described the RBI's decision as a pragmatic move amid ongoing global headwinds. While acknowledging that a marginal rate cut could have eased the burden on borrowers, he said consistency in monetary policy may ultimately prove more valuable than short-term adjustments.
According to Jain, the status quo means home loan EMIs are likely to remain stable for now, offering borrowers certainty and helping maintain confidence in the housing market.
For Harvinder Singh Sikka, Chairman of Sikka Group, the RBI's decision signals measured confidence in India's economic direction. He said the stable policy environment supports sustained growth and removes uncertainty for both homebuyers and commercial occupiers, enabling them to make long-term decisions with greater confidence.
Sikka pointed out that the residential and commercial real estate segments continue to be driven by structural demand and genuine end-use requirements, factors that remain strong regardless of short-term movements in interest rates.
Highlighting the importance of affordability, Kushagra Ansal, Director of Ansal Housing, said the housing sector remains highly sensitive to home loan rates, particularly for first-time buyers. He noted that any increase in the repo rate would have significantly impacted affordability for this segment.
The RBI's decision to hold rates steady, he said, provides critical breathing space for aspiring homeowners and creates an environment where developers can undertake project planning with greater certainty, without having to worry about sudden changes in demand sentiment.
The broad consensus across the industry is that the RBI's decision has reinforced confidence in the economy while ensuring stability in borrowing costs. At a time when global uncertainties continue to cloud the economic outlook, the central bank's balanced approach is expected to support housing demand, encourage investment, and keep the real estate sector on a steady growth path.
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