As the Reserve Bank of India gears up for its upcoming Monetary Policy Committee (MPC) meeting, the financial and real estate sectors are closely watching for signs of any rate action. The central bank has already delivered 100 basis points of cuts in 2025 across three tranches, bringing the repo rate to 5.5%. With inflation easing but global economic volatility persisting—driven by trade shifts, tariff resets, and geopolitical headwinds—market participants largely anticipate that the RBI will hold the benchmark lending rate steady this month.
Economic indicators remain mixed. While consumer prices have stabilized, corporate investment and industrial production continue to show uneven recovery. This has left the policy outlook delicately balanced between supporting growth and maintaining monetary stability. Experts from real estate consulting, property platforms, and financial services suggest that the RBI may refrain from additional easing in the August meeting, though a rate cut in future quarters is not ruled out—particularly if inflation trends continue downward and transmission improves across banking channels.
Industry Experts Opinion
Vimal Nadar, National Director and Head of Research, Colliers India:
“Starting in February, the RBI has reduced the repo rate by 100 bps in 2025 through three successive rate cuts. Given the uncertain global economic outlook, volatile trade environment due to resetting tariffs, we expect the Central Bank to remain vigilant and keep the benchmark lending rate steady at 5.5%. The neutral stance is also likely to continue, signaling the end of easing monetary policy cycle. With the transmission of lower interest rates to end users getting completed, we expect real estate developers & lenders to benefit from reduced financing costs. Additionally, prospective homebuyers have started benefiting from lower home loan interest rates & discounts as we usher into the festive second half of 2025, keeping housing sales steady across the major residential markets of the country.”
Piyush Bothra, Co-Founder and CFO, Square Yards:
“Given the front-loaded rate cut in June and ongoing global uncertainties, particularly the recently announced US tariffs, we expect the central bank to adopt a wait-and-watch approach and maintain the current 5.50% repo rate. For property markets and the real estate sector at large, this means interest rates are likely to remain stable, sustaining the current momentum. Moreover, since the previous rate cuts have yet to be fully transmitted, the RBI is expected to take a firmer stance with banks and NBFCs to ensure the benefits are passed on to borrowers. While an immediate rate cut seems unlikely, a 25-basis point cut in the October meeting remains on the table and could serve as a significant festive season stimulus for the housing market.”
Shrinivas Rao, CEO, Vestian:
“As global trade dynamics evolve in response to recent US tariff measures, the RBI is likely to adopt a cautious stance in the upcoming MPC meeting. Amid global headwinds, maintaining the current policy stance would ensure financial resilience and bolster investor confidence. Continuing the current repo rate would provide stability, especially when domestic inflation is easing and growth momentum gradually strengthening. Furthermore, if headline inflation continues with its downward trajectory, the coming quarters may see a reduction in the repo rate.”
Akhil Saraf, Founder and CEO, Reloy:
“With retail inflation at record lows, corporate investment lagging, and industrial output losing steam, a substantial rate cut is not just warranted, it’s essential. Stimulus through lower interest rates can reignite demand, ease borrowing costs, and revive private sector confidence at a time when the economy needs a decisive push.”
Mr. Abhishek Raj, Founder & CEO of Jenika Ventures
“We acknowledge the RBI’s prudent decision to maintain the current repo rate, which reflects its continued focus on price stability amidst evolving global and domestic conditions. While the status quo supports macroeconomic resilience, a more accommodative stance could have given added support to real estate, especially at a time when consumer sentiment is gradually improving. For homebuyers and developers alike, affordable credit access continues to be a prime catalyst of housing market momentum. At Jenika Ventures, we believe that consistent policy support via enhanced liquidity channels and targeted incentives for affordable and sustainable housing will be instrumental in speeding up sectoral growth. We are optimistic about the long-term trend of Indian real estate and encourage further cooperation among regulators, financial institutions, and developers to bring out the best in the industry.”
Mr. Shorab Upadhyay, Managing Director, TRG Group
“We appreciate the all-round, measured policy response of the RBI to current macroeconomic challenges . The RBI’s commitment to not increase the repo rate conveys a balance between impending inflation pressures and positively rated GDP growth. Creating predictability via maintained interest rates is paramount for buyer confidence in the residential and commercial property segments of the real estate industry. Further, sustained purchasing activity is only available through good buyer confidence. Although a rate cut would have given a sharper boost to demand and reduced the cost of financing for builders, we appreciate the exercise of prudence in the face of cross-country uncertainties and inflationary concerns. In the future, we hope the RBI continues to set up an enabling environment for long-term infrastructure investment and real estate growth. Policy assistance in the form of access to liquidity, reduced cost of funds, and incentives for sustainable and affordable development will be crucial to accomplish India’s urbanization and housing targets.”
Mr. Robin Pahuja, Co-Founder & Managing Director ElitePro Infra
“We applaud the RBI for keeping its steady and balanced approach in this current monetary policy announcement. Keeping the repo rate constant reflects the central bank’s adherence to macroeconomic stability in a world with increasing uncertainties and inflationary pressures. From the real estate and infrastructure point of view, a stable interest rate regime brings much-needed stability to strategic planning and long-term investments. Yet, we are of the opinion that a rate cut would have further spurred demand, particularly in high-growth urban regions where infrastructure-driven growth is in overdrive. From our perspective at Elite Pro Infra, there’s great opportunity in aligning infrastructure expansion with housing demand. Policymakers must go on encouraging ease of credit, enhancing access to liquidity, and implementing sectoral incentives that promote sustainable growth. A partnership between government, RBI, and industry players will be central to leading inclusive and future-proof urban development.”
Dr Gautam Kanodia, Founder, KREEVA and Kanodia Group
“The RBI’s approach in recent months reflects a commendable balance of foresight and stability, something that has directly benefited the real estate sector. With three rate cuts already since February, another repo rate reduction in August could further accelerate both sales and bookings. Lower borrowing costs enhance buyer confidence and improve liquidity across the value chain. At a time when economic activity remains uneven, real estate has emerged as a steady investment avenue. A potential rate cut now could not only boost market sentiment but also act as a timely catalyst for broader economic revival.”
Amit Modi, Director, County Group
As much as we may wish for it, we expect the RBI to maintain the status quo on the repo rate. The Trump Tariff has come as a spoiler. Despite all this, the Indian economy is on a sound footing, the growth outlook looks promising, and the real estate sector, which entered a consolidation phase this year, is on firm ground. With the banking system liquidity rising to a net surplus of Rs. 3.74 trillion, a three-year high, these are actually good times, and we can hope for a reduction just before the onset of the festive season”.
Mr. Umang Jindal, CEO, Homeland Group
“The previous repo rate cut served as a much-needed catalyst for the real estate sector. For developers, it was a significant move, easing their financial strains. Ahead of the upcoming monetary policy, another rate cut, or even a steady stance, would ease the cost of borrowing, which can help increase demand in both residential and commercial markets. Such a move would strengthen buyer interest in the sector and encourage developers to launch more projects”.
Rajjath Goel, Managing Director, MRG Group
“In Gurugram’s luxury housing market, sentiment plays a big role. The 50 bps cut in repo rate earlier this year was a confidence booster, particularly for premium launches. Another rate cut in August- or even a stability- would add further momentum, especially ahead of the festive season. This will give a reassurance that macroeconomic cues are aligned with long-term investment decisions.”
Mr. Vikas Dua, Founder & Director, Chintamanis
“RBI bringing the repo rate to 5.5% in June was already in sync with the expectations of the real estate sector. But the real focus now is on continuity. We have high hopes that the government will sustain this momentum with supportive policies in the upcoming monetary policy announcement. While interest rates are just one factor, a further reduction would boost the confidence of buyers and will further induce their investment & consumption decision.”
Mr. Sanchit Bhutani, Managing Director, Group 108
“The June rate cut came at a crucial juncture for the Noida-Greater Noida’s commercial real estate market. With rising demand for Grade A office and retail spaces, softer borrowing costs helped developers and occupiers plan better. Besides, the region is already witnessing growing interest from domestic enterprises and global occupiers eyeing expansion. If the August policy brings another rate reduction, it will further reduce entry barriers for businesses and investors, fuelling more transactions and project launches.”
Saurabh Saharan, Group Managing Director, HCBS Developments
“Ahead of the upcoming MPC meeting, a further cut in the repo rate would be a welcome move for the entire housing ecosystem in NCR. The reduction earlier this year already helped improve buyer sentiment, especially in the mid-income and emerging premium categories. Lower EMIs not only enhance affordability but also bring back momentum in segments where decisions were being deferred. A slight rate cut, or even maintaining it, could align perfectly with the festive buying cycle, giving both end-users and developers the confidence to act decisively. This will also provide relief to builders by reducing borrowing costs and enabling them to launch new projects and clear inventory faster.”
Kushagr Ansal, Director, Ansal Housing
“With the RBI’s monetary policy review approaching, the industry is optimistic that the central bank will continue its supportive stance. A further cut in the repo rate, or even holding it steady, will have a positive impact on homebuyer sentiment, particularly among first-time buyers. Stable or lower borrowing costs enhance affordability and can accelerate decision-making.”
Prakash Mehta, Chairman and Managing Director of Ocus Group
“The stability in the repo rate will help maintain consistency in lending interest rates, which is a positive sign for the overall real estate sector. It will support market sentiment during the upcoming festive season, a period that typically sees increased investment activity. The impact of recent rate cuts is already visible, and if the RBI continues to keep rates steady, it will allow developers to maintain price stability across projects, thereby boosting buyer and investor confidence. With rates currently at 5.50%, stakeholders will find it easier to plan long-term financial strategies, supporting sustained demand across commercial, retail, and premium segments”.
Sakshee Katiyal, Chairperson, Home and Soul
“Customer sentiment is already positive during the festive season. If interest rates are further reduced, it will give a dual boost to the real estate sector – increasing both sales and investment.”
Manit Sethi, Director of Excentia Infra
“If there is a further repo rate cut in August, it will be a significant opportunity for both the secondary and premium segments. A reduction in interest rates will ease the burden of EMIs, making it easier for new buyers to make purchase decisions.”
Rakesh Kaushik, Director, VHD Group
“As we approach the upcoming MPC review, homebuyers and developers are closely watching the policy stance. A stable or a marginal rate cut could significantly uplift buyer sentiment, especially in emerging tier 2 and 3 markets, where affordability and long-term value drive decisions. The earlier rate cut already helped fence-sitters take the plunge, and any further support from the RBI will strengthen confidence among first-time buyers. We believe this is an opportune time for aspiring homeowners to act, with both market fundamentals and policy cues working in their favour.”
Sunny Katyal, Co-Founder, Investors Clinic
“Buyers are sensitive to interest rate movements. But the previous 50-bps repo rate cut nudged many prospective buyers and investors back into active search mode across residential and commercial segments. With the upcoming monetary policy on the horizon, we expect that the RBI will maintain the current stability, which would be advantageous for the sector. This steadiness will impact the entire sector, bringing more beneficial opportunities for buyers and developers in both segments.”
Ashwani Kumar, Pyramid Infratech
“In Gurugram, the real estate market is finely attuned to policy cues, and the June repo cut was right in line. It brought renewed traction across both mid-income and luxury segments, as buyers became more optimistic about long-term EMIs. We anticipate that the RBI will maintain the repo rate in August which could deepen that sentiment and energize the demand across the city’s key micro-markets.”
Vishal Sabharwal, Head Sales, Orris Group
“As the RBI’s MPC meeting approaches, we expect the central bank to maintain a steady and supportive stance. Even a status quo on the repo rate can be encouraging for homebuyers, keeping EMIs stable and sentiment positive. Consistent policy signals have played a key role in building buyer confidence, and a favourable move now could give a timely boost to demand ahead of the festive season.”
