The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25% following its Monetary Policy Committee (MPC) meeting held from April 6 to 8, 2026, reinforcing a cautious and data-driven approach in the face of persistent global uncertainties. The decision marks a continued pause after cumulative rate cuts of 125 basis points since February 2025, as the central bank seeks to strike a delicate balance between supporting economic growth and containing inflationary pressures.
With inflation showing signs of moderation but external risks such as volatile commodity prices and geopolitical tensions still looming, the RBI has retained a neutral stance, signaling a clear “wait-and-watch” strategy while closely monitoring evolving macroeconomic conditions.
Industry Experts Opinions
Mr. Umesh Gowda H A, Chairman and Founder of Sanjeevini Group
“The RBI’s move to keep the policy rates unchanged at 5.25% amidst the geopolitical tensions is a good move aimed at stabilising interest rate environment while being watchful of rising inflation and growth. A stable interest rate environment bodes well for the real estate sector even as homebuyers continue to take the benefit of earlier rate cuts. Supported by sustained public spending and a buoyant office market, the residential sector looks at a stable growth going forward.:
Mr. Rahul Singla, Director, Mapsko Group
“The Reserve Bank of India’s decision to hold the repo rate steady reinforces a sense of stability and confidence in the real estate sector. For homebuyers, this is a strong signal that the market remains conducive for long term investment. It creates an encouraging environment where buyers can make timely decisions without uncertainty. At a time when owning a home is a key life goal, this stability presents a compelling opportunity to invest in a secure and appreciating asset.”
Mr. Sandeep Agarwal, Executive Director – Finance and Group CFO, Elan Group
“Homebuyers would find comfort in the RBI’s decision to keep the repo rate at 5.25%, particularly in a market where time and affordability are critical factors. Buyers can plan their investments with more confidence and less financial anxiety when interest rates are stable, which offers much-needed clarity. From a real estate standpoint, this stability is probably going to maintain the pace of demand, especially in the mid and premium housing segments. Additionally, it strengthens market confidence and motivates fence-sitters to make wise choice. In general, a stable rate environment promotes a balanced ecosystem where developers and purchasers may proceed with more assurance and long-term visibility.”
Mr. Dharmendra Raichura- VP & Head of Finance at Ashar Group
“RBI’s decision to maintain the repo rate at 5.25% reinforces stability for India’s real estate sector. Developers benefit from predictable funding costs, disciplined cash-flow planning, and uninterrupted project execution, with residential sales value continuing positive growth and strong collections. Homebuyers enjoy manageable EMIs and improved affordability, as household incomes are expected to outpace property price growth, supporting confident purchase decisions. This continuity strengthens overall market confidence, sustains demand across mid and premium segments, and enables measured growth. A stable rate environment fosters investor trust, encourages strategic launches, and reinforces long-term expansion across the residential real estate market.”
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. Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focussed Alternative Investment Fund (AIF)
We welcome the decision of the RBI to maintain status quo in policy rates amidst the ongoing conflict in West Asia, signaling the apex bank’s consistent monitoring of the inflation and growth dynamics. A stable policy environment will support India’s economic growth and help attract capital in financialised products like Alternative Investment Fund that invests in mature and diversified asset classes. The slowdown in residential real estate accentuated by the ongoing West Asia conflict have necessitated that investors look for such alternative investment avenues that safeguard their returns.”
Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra
“The decision to hold the repo rate at 5.25% offers a stable and supportive environment for the housing sector’s ongoing growth. At a time when India’s residential market is experiencing steady, value-driven expansion with transaction values increasing by approximately 6% this consistency becomes particularly significant.
A stable interest rate regime ensures greater predictability in funding for developers, facilitating smoother project execution, while also enabling homebuyers to make long-term financial decisions with enhanced confidence. This continuity not only strengthens overall market sentiment but also sustains demand momentum across segments, reinforcing real estate’s standing as a resilient and progressively evolving asset class.”
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. 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. Sam Chopra, President and Country Head, eXp Realty India
“The RBI’s decision to hold the repo rate at 5.25% reflects strategic restraint in an increasingly volatile and globally interconnected environment. While the temporary two-week truce in the Iran–US–Gulf region has brought some short-term relief to markets, the underlying uncertainty remains intact. Continued volatility in oil, metals and the VIX indicates that risk sentiment is still elevated, and any optimism is likely to remain cautious in the near term. In this context, the RBI’s approach signals a clear intent to preserve flexibility rather than commit prematurely to a directional shift.
For real estate, this environment presents both caution and opportunity. Input costs may remain sensitive to global commodity movements, but at the same time, volatility in financial markets tends to redirect capital towards more stable, asset-backed investments. My view is that the RBI will continue in a calibrated wait-and-watch mode, relying more on liquidity and currency management tools while closely monitoring global developments. The current stance is not passive, it is deliberate, ensuring that policy remains responsive as clarity emerges over the coming weeks.”
Mr. Lalit Parihar, Managing Director, Aaiji Group, a Dholera-based real estate firm
“The housing market is going through some corrections after years of record sales. The conflict has further added to this pain. Amidst this environment, keeping the rate unchanged is a welcome move to help shore up confidence in the real estate sector by enabling borrowers to avail the full benefits from complete pass down of earlier rate cuts. Fiscal and monetary measures will help cushion the impact of the shocks and give a boost to the real estate sector going forward.”
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.”
RBI’s decision to maintain the repo rate at 5.25% reflects a cautious yet balanced approach aimed at sustaining economic stability amid global uncertainties. By prioritizing both inflation control and growth momentum, the central bank has reinforced confidence across sectors, particularly real estate and banking. The steady rate environment provides clarity for borrowers, investors, and developers, supporting continued demand and financial planning. While risks from global volatility and domestic factors persist, the RBI’s data-driven stance ensures flexibility to respond to evolving conditions, positioning the economy for stable and measured growth in the coming months. The next MPC meeting is scheduled for June 3 to 5, 2026, where the central bank is expected to reassess the macroeconomic situation and adjust its policy stance if necessary.
Mr. Shrinivas Rao, FRICS, CEO, Vestian
“The decision to keep the repo rate unchanged for an extended period comes as a welcome relief. It is likely to keep mortgage rates steady and competitive at a time when construction costs remain elevated due to the ongoing West Asia crisis. This move could help cushion the impact of rising input costs on demand and allow stakeholders to recalibrate their strategies in response to evolving market dynamics. However, this may be the RBI’s final status quo before the repo rate begins its upward trajectory.”
Mr. Vimal Nadar, National Director & Head, Research, Colliers India.
“RBI has kept the repo rate unchanged at 5.25% in its first MPC meeting of the fiscal year. This along with the continuation of neutral stance reflects a ‘wait-and-watch’ approach amid ongoing West Asia crisis and its fallout on commodity & fuel prices and supply chain disruptions as well. Although inflation levels have inched up in recent times driven by crude price volatilities, it remains relatively contained, with a projection of 4.6% for FY 2026-27. Simultaneously, on the growth front, the GDP is forecasted to grow at 6.9%.
While the outlook for overall real estate remains positive at this juncture, the likely impact of supply chain shocks and the resultant rise in construction materials can slow down ongoing and future construction activities. The intensity & duration of the ongoing crisis will have a significant bearing on consumption patterns including retail, hospitality and housing demand especially in the affordable & mid income segments. At the same, the fundamentals of the Indian economy remain strong and will provide a cushion for the real estate sector to remain resilient in the medium term.”
Mr Piyush Bothra, Co-Founder and CFO, Square Yards
“The current update on repo rates brings much-needed predictability for homebuyers and the real estate sector. With borrowing costs holding steady, demand, particularly in the mid-income and premium segments, is expected to remain resilient in the near term. This stability in interest rates also supports buyer sentiment and allows developers and lenders to plan with greater confidence. However, the RBI’s cautious tone suggests that stakeholders should remain prepared for potential shifts as inflation and global uncertainties continue to evolve. Any movement in rates going forward will be closely linked to external factors, and both homebuyers and industry players should stay mindful of changing macroeconomic conditions while making long-term decisions.”
Mr. Yateesh Wahaal, Director Finance, M3M India
“The decision of the RBI to keep the repo rate unchanged at 5.25% reflects a calibrated approach to reinforce stability in the current times of global and domestic uncertainties. For the real estate sector, the stable repo rates will enhance the confidence of buyers and developers alike. The decision will aid the developers in planning and executing projects with greater certainty. For buyers, the stability in repo rates will translate to greater conviction in buying decisions. In the long term, the current decision will facilitate the demand momentum and the overall robustness of the real estate sector.”
Mr. Anuj Sharma, COO, IMGC (India Mortgage Guarantee Corporation)
“The RBI’s latest policy approach looks less like a routine rate decision and more like a restraint. At a time when the global environment is being disturbed by fresh geopolitical tensions, volatile commodity prices and rising uncertainty, holding the line on rates is not passivity. It is prudence. The repo rate remains at 5.25%, which signals that the central bank is choosing stability.
For housing loans, the message is straightforward. This is not yet the environment for easy optimism. Borrowers may not see immediate transmission in the form of softer loan rates, and lenders are also unlikely to turn casual. In uncertain times, housing finance is influenced not just by interest rates, but by the borrower’s confidence in income, monthly affordability and the ability to absorb shocks. That is where caution begins to matter more than demand.
For the broader economy, this policy stance is a reminder that monetary policy cannot behave in isolation from the world outside. When disruption starts affecting oil, inflation expectations and overall sentiment, central banks have to protect credibility first. Growth remains important, but so does discipline. In moments like these, holding steady is sometimes the stronger move than appearing accommodative too soon.”
Mr. Vikas Bhasin, Managing Director, Saya Group
“The RBI’s decision to maintain the status quo was largely on expected lines. Despite ongoing geopolitical tensions and an adverse supply chain environment, this move is positive for both the real estate sector and borrowers, as it provides stability and supports continued demand.
The decision also reflects the underlying strength of the Indian economy. We remain confident that India will continue to demonstrate resilience and emerge stronger amid global uncertainties.
For homebuyers, current home loan interest rates in the range of 7.25% to 7.5% per annum remain quite attractive. Coupled with relatively stable property prices over the past few months, this presents a favourable window for those looking to purchase a home.
However, we anticipate an upward movement in property prices going forward. Disruptions in the supply chain and rising input costs are likely to increase construction expenses, which could eventually be passed on to buyers.”
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution
“The RBI’s decision to maintain the status quo on policy rates, despite prevailing global uncertainties and supply-side challenges, comes as a strong positive for borrowers, particularly home loan customers. A stable interest rate environment ensures that EMIs remain predictable, allowing households to plan their finances with greater confidence and avoid any immediate increase in repayment burden.
At current home loan interest rates of around 7.25% to 7.5% per annum, the EMI for a 20-year tenure works out to approximately ₹790 to ₹810 per month per ₹1 lakh of loan. This means a ₹50 lakh loan would have an EMI of roughly ₹39,500 to ₹40,500, while a ₹1 crore loan would translate to about ₹79,000 to ₹81,000 per month, making borrowing relatively affordable in the current scenario.
For prospective homebuyers, it is important to plan the loan based on affordability rather than maximum eligibility, ensuring that EMIs remain within 30–40% of monthly income to maintain financial stability. Opting for a longer tenure can help keep EMIs comfortable, but borrowers should aim to make periodic prepayments whenever possible to reduce the overall interest burden. Maintaining a contingency fund equivalent to at least 6–9 months of expenses and EMIs is also advisable, especially given potential uncertainties in interest rate cycles.
For existing borrowers, this is a good time to review loan terms and explore options such as balance transfer or rate renegotiation if they are paying higher interest rates. Increasing EMI amounts in line with income growth and making early-stage prepayments can significantly reduce the loan tenure and total interest outgo. Additionally, borrowers should closely monitor any extension in tenure due to rate changes and maintain a strong credit profile to benefit from better refinancing opportunities in the future.”
Sh. Shrivallabh Goyal, CEO and Whole Time Director, Reliance Model Economic Township
“The decision by the Reserve Bank of India to hold the repo rate underscores a calibrated approach to balancing growth and inflation in an environment that continues to remain dynamic. The pause provides the necessary continuity for earlier rate actions to fully transmit through the system, particularly in terms of credit flow and consumption momentum. For the real estate sector, this stability is reassuring. While interest rates remain a key factor for affordability, especially for end users in the entry segment, there is a growing expectation for more meaningful easing in borrowing costs to further support consumption. At the same time, the broader demand momentum is increasingly being driven by structural factors such as rising income visibility, infrastructure-led development, and a strong preference for organised, compliant developments.
This shift is also reflected in the rising traction across integrated industrial townships and planned urban ecosystems, where demand is being shaped less by short-term rate cycles and more by long-term value creation, infrastructure readiness, and institutional-grade planning.
A steady rate environment allows both homebuyers and developers to plan with greater confidence, supporting sustained absorption across segments, particularly in well-connected urban clusters. In that sense, policy predictability is emerging as a critical enabler for long-term, fundamentals-driven growth in the sector.”
Mr. Manoj Goyal, Director, Forteasia Realty Pvt. Ltd.
“The RBI decision to maintain the repo rate at 5.25% provides positive news to the real estate industry. Home loans have become more affordable after 2025 when lenders reduced their rates by 125 basis points. Homeowners with a typical housing loan of ₹50 lakh now pay monthly EMIs which cost almost ₹4,000 less than their highest payment point. This development improves affordability for those who want to buy their first home. Mid-income developers and affordable housing developers report an increase in customer traffic to their properties. The current rate pause provides you with an opportunity to join the market before property prices rise against you. Your delay should not exceed the expenses which result from any possible future rate adjustments.”
Mr. Akash Pharande, Managing Director, Pharande Spaces
“Real estate developers have reached a point of relief. The base rate will remain unchanged at 5.25% which allows construction finance costs to remain steady while builders keep their present prices without showing increased interest expenses to their customers. The current market conditions have restored buyer trust which existed before. The last two months have shown housing sales growth in major cities which include Mumbai and Bengaluru and Pune. The current period serves as the perfect opportunity for homebuyers who want to purchase their homes. The combination of stable EMIs and developer pricing and the RBI’s neutral position allows you to negotiate better property deals without needing to fear unexpected loan expense increases.”
Mr. Vijay Raundal, Managing Director,Teerth Realities
“The pause in RBI’s interest rate shows its impact on real estate market demand now stands as the most evident proof. The home loan interest rates for most borrowers maintain a range between 7.25% and 8.5% which has become historically attractive because the 5.25% repo rate remains unchanged. The math shows that buying a home becomes better than renting because top cities provide rental yields which range from 3% to 4%. Investors who want to maintain their property investments find that stable rates decrease their EMI payment risk. The luxury housing market continues to struggle while both affordable housing and mid-range housing markets experience real growth. People who have cash available should invest in residential real estate because it currently provides dual benefits through value growth and rental earnings.”
Mr. Anurag Goel, Director,Goel Ganga Developments
The real estate market faces a harsh reality because investors need to understand that the RBI maintains its repo rate at 5.25%. The steep rate cuts of 2025 are unlikely to repeat. Therefore, waiting for ‘even lower’ home loan rates is a futile strategy. Instead, focus on the asset itself. In markets like Ahmedabad, Chennai, and NCR’s peripheral zones, property prices are still reasonable while rental demand is rising. A stable interest rate environment allows you to calculate exact entry and exit yields. Don’t speculate on monetary policy. Make purchases based on current cash flow situations instead of predicting future rate changes.
Mr.Sudhir A Patel, Director,Shyam Group
“The real estate revival now exists as a physical reality which extends beyond its initial media coverage. The RBI maintains its interest rates at present levels which enables two essential elements to function together with affordable EMIs and construction expenses that remain unchanged. The ongoing construction of their property development project currently requires basic construction services. Developers now provide ‘rate-lock’ schemes which enable them to maintain current market prices during a three to six month period because their borrowing expenses will remain stable. Investors in projects that require two to three years for completion should consider taking their loans at the present time. Your principal amount will remain fixed at today’s property valuation even if rates experience minimal increases. The price cycle determines better timing for real estate investment than the rate cycle.”
Aman Sharma, Managing Director & Founder, Aarize Group
“We welcome the RBI’s decision to keep the repo rate at 5.25%. This comes as a reassuring move, especially at a time when the global economy is under stress, highlighting the strength and stability of the domestic economic outlook. It will be a positive sign for the real estate sector as it will facilitate a supportive environment for the positive momentum going forward. It will also send a positive signal for investors, thus facilitating market confidence. For buyers it would be a lot of certainty in the buying of homes that would generate the promise of value in the longer run. Additionally, stable repo rates will help to keep home loan interest rates steady, improving affordability and encouraging more buyers to take purchase decisions with greater confidence. A consistent rate environment will help maintain growth traction, encourage disciplined investments and support the sector’s evolution in a more resilient and sustainable manner. ”
Mr. Ashish Agarwal, Director, AU Real Estate
“We welcome the RBI’s decision to keep the repo rate unchanged. The decision will help sustain momentum in the real estate sector. Rate stability is an important element in building the buyer’s confidence. This will ensure that buyers are making a more structured decision process for purchases. Although it will provide a steady demand to the housing market, it will definitely build the buyer’s confidence in premium properties where the buyer is aligned to long-term value and quality. A consistent rate environment will help to maintain growth traction, encourage disciplined.”
Mr. Anil Godara, Founder and Managing Director, J Estates
“We welcome the RBI’s decision to maintain the repo rate at 5.25%. This calibration would be significantly encouraging for the real estate and senior living segment for enhancing the viability of spaces that provide the ecosystem of residential living integrated with healthcare and wellness infrastructure. It will also have a rippling effect on the investor sentiment, characterized by strengthened investor confidence. Additionally, the calibration will also induce steady expansion of professionally managed real estate communities across key markets.”
Mr. Mohit Goel, Managing Director, Omaxe Ltd.
“The RBI’s decision to maintain the current policy stance reflects a calibrated approach to sustaining growth while ensuring macroeconomic stability. For sectors like real estate and infrastructure, continuity in the rate environment provides the confidence required for long-cycle investments and disciplined execution. What is equally important is the broader signal of stability, which supports housing demand, especially in emerging markets where infrastructure is driving real economic activity. As India continues its urbanisation journey, predictable monetary conditions play a key role in enabling planned development and capital deployment. For us, this is not just about sectoral momentum, but about contributing to a larger nation-building agenda, where housing and infrastructure work together to create more resilient and future-ready cities.”
Ms. Binitha Dalal, Founder & Managing Partner, Mt. K Kapital
“The RBI’s decision to hold the repo rate at 5.25% reflects a well-considered and forward-looking approach. It signals confidence in the strength of the Indian economy, with growth holding steady and inflation still within a manageable range despite global uncertainties and fluctuating crude prices. Rather than reacting prematurely, the MPC has chosen to preserve policy flexibility, ensuring it has room to respond if conditions change further. This approach builds a strong position to support the India growth story and maintain stability, while reinforcing India’s resilience and consistent growth outlook in the global context.”
Ms. Amrita Gupta, Director, Manglam Group
“The RBI keeping the repo rate unchanged at 5.25% and continuing with a neutral stance comes as a relief for the real estate sector. Stable interest rates help maintain buyer confidence and keep demand on track, even as global factors create some uncertainty. This kind of consistency matters, especially when homebuyers are sensitive to changes in EMIs. It also gives developers better visibility while planning launches and pricing in the near term.”
Mr. Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited
“The RBI’s decision to keep the repo rate stable at 5.25% reflects a methodical approach to reinforce stability in the current environment of evolving global uncertainty. The decision will help to facilitate confidence among the various stakeholders of the real estate sector. For buyers, the stable repo rates will equip them with enhanced conviction in their buying decisions. Developers will also feel supported by the current decision as it directly aids them with confidence to launch projects with greater certainty. The stable repo rates will thus enhance the overall momentum of demand and ensure resilience in the real estate sector.”
Mr. Ashish Sharma, AVP Operations, Brahma Group
“The RBI’s decision to keep the repo rate unchanged at 5.25% provides much-needed stability to the real estate sector, especially in a volatile global environment. This continuity ensures that home loan interest rates remain steady, supporting buyers and sustaining end-user demand.
For developers, a predictable interest rate regime improves financial planning and encourages ongoing and new project investments. The move reinforces positive sentiment across the housing market, particularly in the mid-income segments and is likely to sustain the sector’s growth momentum in the coming quarters.”
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