Real Estate Anticipate Growth from upcoming RBI Repo Rate Declaration

With the RBI Monetary Policy announcement expected shortly, real estate leaders have shared their perspectives on the impact of maintaining the repo rate at 5.50% and the potential for future adjustments. Developers highlight that a stable monetary environment supports predictable borrowing costs, stronger buyer confidence, and smoother project execution. This stability is particularly important for mid-income and affordable housing segments, where accessible financing is key to sustaining demand and completing ongoing projects.

At the same time, the possibility of a calibrated rate cut in upcoming policy reviews is being viewed positively by lending experts. A measured easing could reduce the overall cost of credit, stimulate demand across key consumption-driven and investment-led sectors, and further reinforce economic growth momentum. Combined with the current stability, these factors set the stage for a strong recovery and sustained growth in the real estate sector through 2025.

RBI Policy Pre-Expectations 

Shiv Garg, Director, Forteasia Realty Pvt. Ltd.

“The Reserve Bank of India’s decision to maintain the repo rate at 5.50% is signaling a very strong stability to the real estate market. The consistency in monetary policy truly supports housing loans at low rates, thus encouraging the entry of first-time buyers and middle-income families into property ownership. Developers are also aided by financing that is less strict, thus speeding up the sector’s growth through project completions and new launches. The rate stability is perceived positively and the growth could be sustained through 2025.“

Anurag Goel, Director, Goel Ganga Developments

“The maintenance of the repo rate has granted real estate developers the opportunity to operate project timelines with lesser uncertainties. The narrowing of the cost on loans granted by the banks means that it is easier to obtain mortgages, thereby gradually raising the confidence of buyers especially in the mid-income and affordable segments. This condition is conducive to investments and the sales of inventories, which are the things to be done for the sector’s revival in Tier 1 and Tier 2 cities.“

Pramod Kumar Gupta, Director, Kadamashree Developers India LLP

“The RBI’s choice of not raising the repo rate in a market that is highly dependent on interest rates to be sure both the buyers and the developers. Real estate transactions are mostly supported by an increase in liquidity and reduction in loan costs, especially in the mid-income and affordable housing sectors that are likely to recover soon, thus, indicating that the market is getting better.“

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

“Developers welcome the RBI’s steady repo stance as it lowers project financing costs and facilitates smoother fund flow. Cheaper home loans and sustained growth indicators together will likely spur housing demand, aiding recovery in unsold inventory and boosting new construction momentum.“

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution

“We expect the Monetary Policy Committee to announce a 25 basis points rate cut in the upcoming policy review. With inflation steadily moving within the RBI’s comfort range and multiple high-frequency indicators pointing towards a gradual economic softening, the environment is now conducive for a calibrated easing.

A rate cut at this juncture would provide meaningful relief to borrowers—particularly those servicing big-ticket loans such as home loans and auto loans. It would help lower the overall cost of credit and, in turn, stimulate demand across key consumption-driven and investment-led sectors of the economy.

Also, a measured rate cut will signal confidence in the economic outlook while supporting growth momentum. As a leading loan distribution company, Andromeda believes that easing rates will strengthen credit flows, encourage capital formation, and contribute to a more robust and broad-based economic recovery.“

Rajjath Goel, Managing Director, MRG Group, 

“The current economic resilience has brought the sector to an interesting juncture. A pause in December is understandable, but the underlying indicators, especially easing inflation and liquidity stability, suggest that policymakers are inching closer to an accommodative cycle. For Gurugram’s luxury housing, even a 25-basis-point cut can meaningfully lift the sentiment of buyers and investors who are actively reallocating wealth into real estate. A softer repo environment in early 2026 would further deepen the momentum we’re witnessing, accelerating absorption in marquee projects and reinforcing luxury housing as a long-term wealth creation asset”.

Harvinder Singh Sikka, Chairman Sikka Group, says, 

“As the RBI gears up to announce the policy tomorrow, the industry is keenly watching. Keeping the repo rate unchanged or changing it, the efforts would be aimed at a delicate balance between containing inflation and furthering economic growth. As far as real estate is concerned, both situations bring different sets of implications: stable rates keep affordability intact, while any calibrated change would reflect broader economic priorities. At Sikka Group, we believe clarity from the central bank helps buyers and developers plan with confidence, and we look forward to the guidance the RBI will offer.”

Yash Miglani, Managing Director, Migsun Group, 

“The review of the repo rate tomorrow is expected to be either a hold or a calibrated move as per the signals emanating from economic indicators. Both situations have their impact-the continuance of rates as before keeps demand stable, whereas any adjustment indicates how the central bank would look to control inflation and liquidity. We considers this policy update to be a relevant framework in the context of market sentiments, and we are ready to gear up accordingly in either direction that RBI might consider fitting at this juncture.”

Sanjay Sharma, Director, SKA Group

“Given the current macroeconomic scenario reflecting strong GDP growth, controlled inflation, and stable buyer sentiment, the sector anticipates the December policy to either be slightly reduced or be a finely balanced call. Even if the MPC maintains the status quo, we expect the benign inflation trend to create room for a rate cut early next year. For Noida–Greater Noida & Ghaziabad, where end-user driven demand is bringing a surge in luxury homes, even a marginal reduction in home-loan rates can unlock a new wave of affordability. Developers are preparing for a more upbeat first quarter, with fence-sitters likely to convert once borrowing costs begin softening sustainably.”

Ashok Singh Jaunapuriya, MD & CEO, SS Group

“With economists indicating that December will most likely be a status-quo policy, the industry must prepare for stability rather than immediate relief. Gurugram’s premium housing markets are demonstrating strong absorption despite unchanged rates, showing that the sector has matured. While a rate cut would certainly improve sentiment, buyers in the city today are taking long-term calls based on asset value, not short-term fluctuations. Our view is that once inflation remains anchored for a few more months, the RBI will have the comfort to ease rates. Until then, the stability itself supports healthy, sustained growth.

 Mr Parvinder Singh, CEO, Trident Realty

“Homebuyers today are extremely price sensitive, and even a small reduction in borrowing cost can make a big difference in their decision to purchase. We believe that a measured cut in the present 5.50% repo rate will support affordability and boost confidence in the housing market. While the sector has remained resilient, a supportive interest rate environment will encourage more aspiring buyers to step forward and invest in their own homes. We hope the RBI will consider the current market sentiments and provide the much-needed push for sustained growth in the real estate sector.”

The real estate sector views the RBI’s steady repo rate and the possibility of a calibrated easing as significant drivers of market confidence and growth. Stable borrowing costs, improved liquidity, and rising homebuyer interest—especially in mid-income and affordable segments—are expected to accelerate project execution and support new launches. With these factors in play, the real estate market is poised for sustained momentum and a robust recovery through 2025.

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