The Reserve Bank of India’s Monetary Policy Committee (MPC), which began its meeting on Wednesday, has maintained the repo rate at 6.5 percent for the eighth consecutive time. This marks the first MPC meeting since the Lok Sabha election results were announced. Realtors have shared their views on this decision.
Pradeep Aggarwal, Founder & Chairman, of Signature Global (India) Ltd said, “We welcome the apex bank’s strategic move to hold rates steady for the eighth consecutive time. This decision reflects a careful balance between addressing high food inflation and maintaining overall economic stability, with the Consumer Price Index (CPI) staying within the target range. However, economists anticipate that if inflation continues to decline, we might see rate cuts of 25-50 basis points in the second half of the fiscal year. Such reductions in interest rates could be introduced in future policy reviews.
If these rate cuts materialize, they could significantly boost the real estate sector, which is already experiencing strong demand from end-users. Lower interest rates would make borrowing cheaper, encouraging more people to invest in property and stimulating further growth in the housing market. This trend is particularly expected to remain robust over the coming years in cities like Gurugram, which are witnessing substantial infrastructure development. Gurugram’s rapid urbanization and infrastructure projects, such as new highways, metro extensions, and improved public amenities, are making it an attractive destination for homebuyers and investors.
Manoj Gaur, President of CREDAI NCR and CMD Gaurs Group said, “Even though a marginal reduction in the repo rate would have further raised the real estate sector’s spirit, we welcome RBI’s announcement not to change the interest rate. One area of concern is the affordable housing segment, which requires an intervention. Overall, this is a welcome decision, and the real estate market, with an all-time low unsold stock and experiencing an all-time boom, welcomes this move. The decision supports the growth and stability of the sector.
Amit Modi, Director County Group States, The RBI’s decision to keep the repo rate unchanged at 6.50% is a welcome step. This move is beneficial for both developers and potential buyers interested in investing in this sector. It will provide them relief in terms of loan interest rates, along with additional benefits from the government’s measures to balance inflation. The government is considerate of buyers’ sentiments and expectations, and its favorable decisions for this sector are promoting its growth.
Mohit Goel, Managing Director of Omaxe Group said “By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has again relieved both buyers and developers. The sector is experiencing remarkable growth, with increased interest in mid, premium, and luxury housing segments. Stable loan rates will benefit prospective buyers and sustain public confidence in the authorities. We expect this positive step to keep the real estate sector on an upward trajectory, benefiting both buyers and developers.”
Kushagr Ansal, Director of Ansal Housing, believes the RBI’s decision to maintain the repo rate will positively impact the housing market. Despite rising housing costs, the unchanged home loan rates offer some relief to prospective buyers. As a result, stable interest rates benefit both buyers and developers, fostering increased consumer confidence and investment in the sector. The RBI’s decision is expected to support the launch of new projects and the expansion of developments in emerging areas of interest.
Nayan Raheja from Raheja Developers said, “The RBI’s decision to keep the repo rate unchanged at 6.5% for the eighth time benefits the real estate sector in several ways including Consumer Confidence. Stability in interest rates boosts confidence, making home purchases more attractive and affordable. Real estate becomes a more appealing investment compared to volatile options, attracting both domestic and foreign investors. Predictable loan costs leave consumers with more disposable income, driving demand for housing. Overall, stable repo rates support growth, affordability, and investment in the real estate sector.
Harinder Singh Hora, Founder Chairman, Reach Group said, “These are great times both for the economy and the real estate sector including the commercial segment. The decision by RBI to keep the repo rate unchanged will bring cheers to the market. World sees immense possibilities in India and the growth trajectory is high. The GDP numbers are also expected to get better and the real estate share in the GDP percentage is rising. Altogether, RBI’s decision will boost real estate investments.”
As per Ashwani Kumar, Pyramid Infratech, “The RBI’s maintenance of the repo rates at 6.50% offers developers and potential buyers eyeing investments in the sector advantages. The sector has already been performing well over the last few years, and the decision to keep the repo rate unchanged will benefit both prospective buyers and developers. This stability is expected to enhance both residential and commercial real estate sectors, creating appealing investment avenues across all buyer segments. This will also boost the affordable housing segment, which is looking for some relief.”
Sanchit Bhutani, MD, Group 108 said, “The RBI has once again taken a commendable step by keeping the repo rate steady for the eighth consecutive time. A stable repo rate provides confidence for investors and home buyers. This stability directly impacts the growth of real estate sector, which in turn makes a significant contribution to India’s GDP and future growth prospects.”
As per Yash Miglani, MD Migsun Group, “The RBI’s decision to keep the repo rate stable is a balancing act between controlling inflation and promoting economic development. Amidst reduced inflation and strong GDP forecasts, swiftly aligning with the real estate sector is imperative. Embracing innovation, stability, and strategies will be key to unlocking new opportunities for growth in the sector through emerging scenarios.”
Pawan Sharma, MD, Trisol RED said, “The decision to maintain the repo rate at 6.5% is expected to bring about positive growth in the housing market. Despite the increasing cost of housing, unchanged home loan rates provide some relief to potential homebuyers. Consequently, stable interest rates benefit buyers and developers, fostering confidence and investment in the sector. The RBI’s decision is poised to encourage the commencement of new projects and the expansion of development in emerging sectors.
By maintaining the repo rate at 6.50% for the eighth consecutive time, the RBI has demonstrated a commendable initiative for buyers,” says Mr. Gurpal Singh Chawla, Managing Director of TREVOC. “This decision not only stabilizes interest rates for potential buyers but also reinforces public confidence in the government. It’s a positive step, and we are optimistic that the real estate sector will continue to grow rapidly. Both developers and buyers stand to benefit from this measure
Ashwinder R. Singh, Co-Chair of CII’s NR Committee on Real Estate, CEO of Residential at Bhartiya Urban, and Author said, “The RBI’s decision to maintain the repo rate at 6.50% is a strategically sound move that reinforces stability and confidence in the real estate market. This policy stance not only sustains the current growth trajectory but also enhances affordability for potential homebuyers and commercial real estate investors. By keeping interest rates steady, the RBI ensures that financial burdens on borrowers remain manageable, thereby encouraging more investments and purchases. This is expected to drive positive demand, bolster market sentiment, and support long-term growth in the sector.”
As per Sanjay Sharma, Director of SKA Group, stated that the RBI’s decision to maintain the repo rate at 6.50% for the eighth consecutive time is a positive step towards reducing the financial burden on potential buyers. This decision is a significant incentive for potential buyers in the commercial sector to proceed with their property purchases. Certainly, the RBI’s decision will accelerate affordable and mid-range commercial projects.
Rajjath Goel, Managing Director, MRG Group said, “The Reserve Bank has reassured the real estate industry by maintaining stability in repo rates at 6.50% for the eighth consecutive time, bringing relief to potential buyers. With no adjustments made for over a year, buyers can proceed with their investments without facing the pressure of rising loan interest rates. This decision not only alleviates financial concerns but also demonstrates the authorities’ commitment to controlling inflation. We commend this prudent move and its positive impact on the market.”
Neeraj Sharma, MD, Escon Infra Realtor says, “The RBI’s decision to keep the repo rates unchanged at 6.50% for the eighth time is a welcome step. This move will continue to boost momentum in the real estate sector as before. With this decision by the RBI, the flow of potential buyers will also increase because investing will not burden their pockets. Indeed, with interest rates not rising, investor confidence will increase, and there will be faster growth in residential property demand.”
Prateek Tiwari, MD, Prateek Group says “The RBI has made a welcoming move by keeping the repo rates unchanged at 6.50%. This move benefits developers and prospective buyers looking forward to investing in the sector. Further, it would bring them relief in terms of loan interest rates. The real estate sector is witnessing healthy growth momentum thus improved market sentiments and economic dynamics along with the stability in interest rates will augur well for the sector’s growth momentum.”
Sanjeev Arora, Director of 360 Realtors said, “Keeping the repo rate unchanged is on expected lines given the fact that food inflation is rising. Hence RBI will be in a weight and watch mode, Also the agencies will give some time to the new government before taking any significant monetary decision. The silver lining is that real estate will continue to clock double-digit growth backed by steep rise in demand. The market will be upbeat in the times to come marked by the increase end user and investor participation.”
Piyush Kansal, Royale Estate Group expressed, “The RBI’s decision to keep the repo rate unchanged at 6.5% for real estate is commendable. With the country’s economy performing exceptionally well, along with good GDP growth and control over inflation, this sector is expected to continue performing well in the future. However, there are concerns about affordable housing and real estate development in Tier 2 and 3 cities. If there were a reduction in repo rates, it would assist real estate developers in realizing their housing aspirations.”
Ankush Kaul, Chief Business Officer at Ambience Group said, “RBI has maintained the repo rate at 6.5 per cent for the last 16 months. This rate has been kept in mind by the real estate sector for a long time. There is a distinct excitement and confidence among potential buyers, which will encourage buyers to invest in both residential and commercial sectors as the festive season approaches.”
“The realty sector’s development has turned positive, with increasing competition and more people investing in the mid, premium, and luxury residential segments. Developers, on their part, have accelerated the pace of new launches, as evident from the recent Q1 report. India is on a path of progress, and the RBI’s decision to keep the repo rate unchanged will not disrupt the momentum. This decision will motivate the sector because it will relieve borrowers since their EMI will stay the same.” says Prateek Mittal, Executive Director, Sushma Group.
Sandeep Chillar, Founder & Chairman of Landmark Group said that the RBI’s decision to keep the repo rate unchanged for the eighth consecutive time is on the expected lines. The real estate sector is on an upward growth trajectory and the stability in the repo rate will give a fillip to the steady growth while adapting to broader economic conditions and policy directions. By aiming to balance financial stability and economic development, the cautious decision to keep the repo rate unchanged at 6.5% is likely to help the real estate sector maintain its growth momentum, leading to healthy sales in the coming quarter.”
“The Indian real estate sector has been strengthening over the past few years. The RBI’s decision to maintain the repo rate at 6.50% for the eighth consecutive time will benefit this sector. In recent years, there has been a surge in sales in the premium and luxury segments. Buyers are investing in the luxury housing sector, leading to the launch of new projects in this segment. Considering the upcoming festive season, we hope this decision will benefit the luxury real estate sector.” Says Tejpreet Singh, MD Gillco Group.
Salil Kumar, Director, Sales & Marketing, CRC Group said, “The real estate sector has experienced significant growth in recent years, and the RBI’s decision to maintain the repo rate at 6.50% for the eighth consecutive time will have a positive impact on the industry. With rising housing demand, the stability in loan rates will foster greater confidence among buyers and developers, promoting long-term growth. This steadiness in interest rates will enhance both the residential and commercial real estate sectors, creating attractive investment opportunities for buyers across all segments.”
