The Reserve Bank of India (RBI) has kept the benchmark repo rate unchanged at 5.25% and retained its neutral policy stance, while raising its FY27 real GDP growth forecast to 6.7% from 6.6% and lowering its inflation projection to 5.0%. The Monetary Policy Committee (MPC) opted to maintain the current policy settings as it monitors evolving domestic inflation trends and global economic uncertainties.
Announcing the outcome of the three-day MPC meeting on Wednesday, RBI Governor Sanjay Malhotra said the committee unanimously decided to leave the policy repo rate unchanged after assessing domestic and global macroeconomic conditions.
The central bank projected FY27 real GDP growth at 6.7%, with quarterly estimates of 7.0% in Q1, 6.4% in Q2, 6.5% in Q3, and 6.8% in Q4. The RBI said the risks to the growth outlook remain evenly balanced.
The RBI also revised its consumer price inflation (CPI) forecast for FY27 to 5.0%, down from the earlier estimate of 5.1%. Inflation is expected at 5.3% in Q1, 4.7% in Q2, 5.9% in Q3, and 5.5% in Q4, with food and fuel prices likely to keep inflation elevated in the near term before moderating later in the financial year.
Explaining the policy decision, Malhotra said India’s economic growth remains resilient but continues to face uncertainties arising from the southwest monsoon, El Niño conditions, geopolitical tensions and global trade developments. He added that the MPC would seek greater clarity on the inflation trajectory before considering any policy action.
The Governor noted that domestic economic activity has remained resilient despite global uncertainty, supported by strong domestic demand, healthy manufacturing activity and a rebound in merchandise exports. High-frequency indicators also suggest that the economy performed better than expected during the first quarter of FY27.
On the external front, the RBI said India’s foreign exchange reserves remain comfortable, providing import cover of more than 10 months and covering nearly 91% of external debt. The central bank expects the balance of payments to remain in surplus, supported by continued capital inflows.
For the real estate sector, the decision to keep the repo rate unchanged is expected to maintain stable borrowing costs for both homebuyers and developers. With no immediate increase in loan EMIs, housing affordability is likely to remain supportive, particularly in the mid-income and premium housing segments. The higher GDP growth projection also signals confidence in economic activity, which could support demand across residential and commercial real estate. However, developers and homebuyers will continue to monitor inflation trends and future monetary policy decisions, as any sustained price pressures could influence financing costs in the coming months.
Real Estate Expert Opinions
Mr. Abhay Mishra, CEO & President, Jindal Realty
“The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution. Going ahead, policy support and improved liquidity will be key to unlocking the sector’s full potential and ensuring steady, inclusive growth across markets.”
Mr. Rajat Bokolia, CEO, Newstone
“The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector. It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets.”
Mr. Yashank Wason, Managing Director, Royal Green Realty
“RBI MPC’s decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline”
Mr. Dharmendra Raichura, VP & Head of Finance, Ashar Group
“The RBI’s decision to maintain the repo rate at 5.25% reinforces confidence in an already resilient residential real estate market by providing certainty around borrowing costs and creating a stable environment for homebuying decisions. The broad consensus among economists that the repo rate is likely to remain at 5.25% through the remainder of 2026 further supports homebuyer sentiment, financing decisions, and healthy residential demand over the next 6–12 months. For homebuyers, predictable EMIs improve purchase planning and affordability, while developers benefit from greater visibility in project execution, financing, and long-term capital allocation. The most supportive RBI policy signal for the housing sector would be a continued commitment to price stability, a predictable interest rate trajectory, faster transmission of policy rates into home loan pricing by banks, and adequate systemic liquidity to ensure efficient credit flow. Together, these measures would improve housing affordability, make home loans more accessible, strengthen end-user demand, and enable developers to plan investments, financing and project execution with greater confidence. A stable and well-transmitted monetary policy environment will play a pivotal role in sustaining long-term growth across India’s residential real estate sector.”
Mr. Rajan Luthra, CFO, Action Construction Equipment (ACE) Ltd.
“The RBI’s decision to keep the repo rate unchanged at 5.25%, while maintaining a neutral policy stance and projecting GDP growth of 6.7%, reflects confidence in the resilience of the Indian economy despite persistent global uncertainties. Continued public investment in infrastructure and capital expenditure remains a key driver of economic growth and reinforces India’s long-term development trajectory.
For the construction equipment sector, a stable interest rate environment provides greater predictability in financing, supports investments, and facilitates the timely execution of infrastructure projects. It also enables businesses to plan with greater confidence and pursue long-term growth strategies. At ACE, we believe this policy direction provides a conducive environment to strengthen our market position, drive innovation, and contribute meaningfully to India’s infrastructure development.”
Mr. Sandeep Agarwal, Executive Director – Finance & Group CFO, Elan Group
“The RBI’s decision to maintain the repo rate at 5.25% provides stability and greater visibility for long-term investment decisions amid evolving global and economic conditions. For the real estate sector, a stable rate environment supports buyer confidence and strengthens the outlook for projects backed by strong fundamentals, strategic locations and credible execution. This will continue to support sustainable growth across all housing segments.”
Mr. Rahul Singla, Director, MAPSKO Group
“The RBI’s decision to keep the repo rate unchanged at 5.25% underscores its commitment to maintaining a fine balance between economic growth and financial stability. The real estate sector has demonstrated remarkable resilience, with demand continuing to remain robust across key markets. Real estate has consistently been regarded as one of the most reliable long-term wealth creation avenues, and a stable monetary policy further reinforces this confidence. The decision is also expected to support developers by ensuring better financial visibility, improved liquidity, and greater confidence in planning and executing projects efficiently.
Adil Altaf, CEO, ANHAD Developers
“The RBI’s decision to maintain the repo rate reflects a balanced approach. As we noted ahead of the policy, stability is just as important for developers managing construction finance and land acquisition as it is for homebuyers. Predictable borrowing costs enable better project planning, timely execution, and sustained buyer confidence, creating a supportive environment for the sector’s long-term growth.”
Mr. Varun Garg, Director, Karyan Group
“The decision to keep the repo rate unchanged comes as a positive signal for the housing sector, particularly at a time when buyer sentiment remains strong. Stable borrowing costs encourage end-users to move ahead with purchase decisions while allowing developers to maintain project momentum. With demand for premium homes continuing to grow, consistent policy support and improved liquidity will further strengthen market confidence and contribute to the sector’s sustainable growth trajectory.”
Mr. Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd.
“The RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector. A steady rate environment ensures predictability in home loan costs, encouraging buyer confidence and sustaining housing demand. For developers, stable funding conditions and improved liquidity visibility enable better planning of project launches and execution timelines. Overall, this decision reinforces a growth-oriented environment and strengthens confidence across key real estate markets.”
Mr. Pushpender Singh – Managing Director, JMS Group
“The decision to keep the repo rate unchanged brings much-needed stability and predictability for the real estate sector. For homebuyers, it sustains affordability and supports sentiment in an already improving market. For developers, it allows better financial planning and project execution. However, timely liquidity support and faster approvals remain critical to maintain momentum. A balanced policy approach like this helps build long-term confidence and keeps the sector aligned with India’s growth aspirations.”
Mr. Sudeep Bhatt, Director Strategy, Whiteland Corporation
“The RBI MPC has decided to keep the repo rate unchanged at 5.25%. The stance is significant for the real estate sector. It means stable home loans which directly boost housing demand, while improving liquidity for developers. The sector stands to benefit from the re – established buyer sentiment and a growth in investment appetite with EMIs and borrowing cost stabilising.”
Mr. Jitender Yadav, Director, Roots Developers
“The RBI’s decision to maintain the repo rate at 5.25% is, a catalyst for renewed enthusiasm in the real estate sector. Stability in borrowing costs will make home loans more accessible which will increase demand of home buyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets. We look forward to a pragmatic environment for the real estate industry”
Mr Abhishek Raj, Promoter, Jenika Ventures
For a sector that depends on long-term planning and sustained investment, continuity in monetary policy is as valuable as lower borrowing costs. The RBI’s decision to keep the repo rate unchanged at 5.25% provides much-needed certainty for developers, homebuyers, and investors alike. Residential demand continues to be supported by urbanization, rising household incomes, and improving infrastructure, while the commercial segment is benefiting from business expansion and increasing occupier activity. This balanced policy approach creates a conducive environment for sustained growth across both asset classes. We believe that long-term value creation in real estate will incr…
Mr. Ashok Nehlia, Founder & CEO, Nehlia Developers
Policy stability always plays an important role in strengthening long-term investment sentiment, and the RBI’s decision to maintain the repo rate at 5.25% comes as a reassuring signal for the real estate sector. While the premium farmhouse segment is largely driven by lifestyle aspirations and long-term wealth creation, a stable interest rate environment further strengthens buyer confidence and investment planning. Today’s consumers are increasingly looking beyond conventional housing, with growing interest in spacious, nature-centric developments that offer privacy, wellness, and an enhanced quality of life. As connectivity improves and infrastructure expands across emerging destinations, premium farmhouse communities are becoming an attractive investment proposition. We believe that stable monetary policy, coupled with sustained economic growth, will continue to support demand for high-quality lifestyle developments and encourage long-term investments in this evolving segment.
Mr Pawan Sharma, Managing Director, TRG Group
Commercial real estate thrives in an environment where businesses have the confidence to plan ahead, expand operations, and invest for the long term. For developers like TRG Group, the RBI’s decision to retain the repo rate at 5.25% reinforces confidence by providing a stable monetary framework for businesses and investors. A predictable interest rate environment supports retailer expansion, strengthens occupier sentiment, and encourages capital deployment across commercial assets. As urban infrastructure continues to improve and consumer spending remains resilient, destinations such as TRG The Mall are well-positioned to benefit from stronger leasing activity, higher footfalls, and sustained demand. We believe this policy stability will continue to create a favorable ecosystem for commercial developments while unlocking long-term value for businesses, investors, and consumers alike.
Mr. Sam Chopra, President and Country Head, eXp Realty India
“The RBI’s decision to keep the policy repo rate unchanged at 5.25% comes at a time when global markets continue to face uncertainty from geopolitical developments and commodity price movements. In such an environment, a steady monetary policy provides businesses and investors with greater certainty for planning and investment decisions. For the real estate sector, stable interest rates help maintain buyer confidence while allowing developers to plan projects without the uncertainty of rising financing costs. Although global factors such as energy and raw material prices will continue to influence construction costs, India’s domestic demand and ongoing infrastructure investment continue to provide strong support for the sector. A predictable policy environment is therefore important in sustaining long-term investment across residential and commercial real estate.”
Mr. Rohit Kishore, CEO, Hero Realty
The RBI’s decision provides much-needed stability amid global uncertainties. Predictable interest rates help businesses and consumers plan with confidence, while stable borrowing costs support homebuyers and investment activity. For the real estate sector, this move is expected to sustain buyer sentiment and contribute to steady, long-term growth.
Mr. Aman Sarin, Director & CEO, Anant Raj Limited
“This is a welcome move by the RBI, especially given the ongoing crisis in West Asia, which continues to put pressure on input costs across sectors. In such an environment, stability in interest rates is important for maintaining overall confidence in the market. A steady rate scenario helps in better financial planning and provides clarity for both businesses and homebuyers. When borrowing costs are stable, it becomes easier to plan investments, manage cash flows, and stay focused on execution.
At the same time, current home loan rates are still at reasonable levels, which supports buying decisions. For many homebuyers, affordability today is not just about lower rates, but about certainty in monthly payments. That confidence plays a key role in converting intent into actual purchases. Overall, this decision creates a supportive environment where demand can continue to build gradually, while allowing the sector to navigate external challenges with greater resilience.”
Mr. Anurag Mathur, CEO, Savills India
The RBI’s decision to keep the repo rate unchanged at 5.25% for the fifth consecutive policy review, while maintaining a neutral stance, reflects a balanced approach to supporting growth while remaining vigilant on inflation amid an evolving global backdrop. With inflation within the target range, alongside evolving geopolitical developments and fluctuations in crude oil prices, the policy provides greater macroeconomic certainty and enhances visibility for long-term investment.
For the real estate sector, the status quo is expected to support a favourable credit environment while providing greater certainty on borrowing costs and financing conditions, encouraging homebuyer confidence, capital deployment and timely project execution. Although residential demand, particularly in the mid-income and affordable segments, has moderated, the current interest rate cycle should continue to support the sector. Going forward, disciplined capital allocation, operational agility and a resilient macroeconomic backdrop will remain key to creating long-term value.
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