Delhi NCR: The Reserve Bank of India (RBI) announced its decision to maintain the repo rate at 5.5%, marking a pause after three consecutive cuts earlier this year, totalling a 100 basis point reduction since February. This decision, aligned with a neutral monetary policy stance, aims to balance economic growth and inflation control amidst global uncertainties, including U.S. tariffs and geopolitical tensions. The unchanged rate brings stability but no immediate relief for home loan borrowers, while fostering cautious optimism in the real estate sector and consumer sentiment.
For home loan borrowers, this move means predictable and stable monthly EMIs with no immediate change in borrowing costs. Those with floating-rate loans already gained from earlier reductions and can continue to enjoy favourable interest rates, with many banks now offering home loan rates starting from 7.3% to 8%. However, there’s no additional EMI relief for borrowers right now, and the likelihood of further rate cuts in the near term cannot be ruled out as the banking sector awaits more cues from inflation and economic data.
Rohit Kishore, CEO, Hero Realty said, "The RBI’s decision to keep the repo rate unchanged at 5.5% is a steady and reassuring move for the real estate sector. Stable borrowing costs will benefit both homebuyers and developers. For buyers, it means continued lower EMIs and easier access to home loans, which can encourage more people to buy homes. For developers, the sustained interest rates will help manage costs and finish projects on time. This policy continuity will boost confidence in the market and maintain demand for homes and office spaces. We expect the luxury housing segment to stay strong, especially in metro cities. Lower EMIs and better loan offers will make people more confident to buy."
For the real estate industry, especially the residential sector, the RBI’s decision underlines stability and predictability, two factors widely regarded as essential for sustained market health. Stable rates and recent liquidity support from the central bank help developers manage project costs, push new launches, and keep housing supply robust. The continuation of favourable credit conditions and the steady pace of earlier rate cuts also maintain affordability, especially in the mid- and affordable housing segments, and underpin a cautiously optimistic outlook for the market.
Mr. Adil Altaf, Managing Director, Trinity says, "The proposed hike in circle rates, while initially challenging, marks a step toward aligning with actual market dynamics. For micro-markets like Dwarka Expressway, SPR, and Golf Course Road, this recalibration can enhance transparency, reduce underreporting, and boost investor confidence. While short-term sentiment may dip, long-term impact is largely positive—bringing Gurgaon closer to mature global realty practices. Premium corridors with robust infrastructure and livability will continue attracting serious buyers and end-users, helping developers with quality offerings to thrive in a more transparent, compliant ecosystem."
Raghav Malhotra, Founder and Director of PRIME Developments says, "The real estate sector is hopeful with the RBI’s August 2025 repo rate decision on keeping the rates unchanged at 5.50%. It will provide confidence in home loan EMIs, enhancing affordability for first - time buyers and fueling festive season demand. This would drive project launches and completions, aligning with heightened Diwali demand. Given a stable inflation and GDP, and a stable repo rate, consumer confidence remains positive with better clarity in the housing finance ecosystem, along with heightened festive buying, and sustained market growth."
Yashank Wason, Managing Director, Royal Green Realty says, "The Reserve Bank of India’s decision to keep the repo rate steady at 5.5%—following a cumulative cut of 100 basis points earlier this year—offers a strong signal of stability to the real estate sector. By ensuring predictable borrowing costs, this move bolsters consumer confidence, particularly among home loan borrowers who have already gained from earlier rate reductions. With retail inflation easing to a six-year low of 2.1% and GDP growth holding strong at 7.4%, the RBI’s pause reflects confidence in India’s economic fundamentals. This stable interest rate environment is expected to sustain property demand, creating favourable conditions for both buyers and developers."
Abhay Kumar Mishra - President & CEO Jindal Realty said, “RBI’s decision to keep the repo rate unchanged at 5.50% is a welcome move for the real estate sector. Following the significant rate cuts earlier this year, this pause allows the benefits of those reductions to fully pass on to homebuyers. This stability provides a predictable environment, which is crucial for consumer confidence and investment planning. Home loan interest rates are likely to remain stable, encouraging continued demand. We anticipate this will sustain the positive momentum in the housing market, supporting both prospective buyers and developers.”
Sudeep Bhatt, Director Strategy, Whiteland Corporation, says, "The RBI’s decision to maintain the repo rate at 5.50% is a strong positive for the Delhi NCR housing market. We've seen steady growth following previous rate cuts this year. For homebuyers, it ensures a stable interest rate environment, boosting confidence. For developers, the pause allows focused project planning and execution without concerns over rising borrowing costs, supporting a robust pipeline for new launches. This will help sustain demand momentum. It’s a clear signal of continued housing sector growth and we expect sentiment across the region to remain optimistic."
Mohit Agarwal, Business Head, Conscient Infrastructure Pvt. Ltd said, “The RBI’s decision to keep the repo rate unchanged at 5.5% reflects a cautious and balanced approach toward sustaining economic stability. Continued lower borrowing costs will help preserve affordability for luxury homebuyers and investors, thereby sustaining demand in high-end residential markets. This unchanged stance, coupled with the MPC’s neutral outlook, reinforces confidence among HNIs and NRIs to make strategic real estate investments. As a developer, we continue to benefit from predictable financing costs, enabling steady project execution. We anticipate sustained momentum in the luxury housing sector, especially in metro cities, as stable EMIs and attractive financing options continue to drive buyer confidence.”
“The RBI’s decision to maintain the repo rate at its current level reflects a balanced and cautious approach to sustaining economic growth while keeping inflation in check. For the real estate sector, especially the affordable and mid-segment housing markets, this stability in lending rates is crucial. It encourages homebuyers to make purchase decisions and gives developers like us the confidence to plan long-term projects with clarity. At Womeki, we view this as a positive signal for sustained momentum in housing demand in the coming quarters.”--Mr Gaurav K Singh, Chairman and Founder, Womeki Group
Consumer sentiment remains cautiously positive. Stable EMIs and predictable borrowing costs boost confidence, particularly for first-time buyers. Yet, global economic headwinds and elevated property prices may temper demand unless developers offer flexible payment plans. The RBI’s focus on long-term inflation control (projected at 3.1% for FY26) suggests potential for future rate cuts, which could further stimulate housing demand and economic growth.
In summary, while the RBI’s status quo offers no fresh relief to borrowers, it maintains the current positive trajectory for India’s real estate—bolstering homebuyer confidence, supporting steady demand, and providing developers with a stable platform to plan and deliver new projects.
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