RBI Holds Repo Rate at 5.25%
Real Estate

RBI Holds Repo Rate at 5.25%

The Reserve Bank of India has kept the repo rate unchanged at 5.25 per cent, maintaining a neutral policy stance amid global uncertainty, inflation concerns and volatility linked to the West Asia conflict. The decision has been welcomed by the real estate sector, which expects stable borrowing costs to support buyer demand and project execution.

Industry leaders said the policy continuity will help sustain confidence among homebuyers, investors and developers across residential and commercial segments. Stable rates are expected to keep home loan costs broadly steady, supporting long-term purchase decisions, especially in mid-income, premium and first-time buyer categories.

Shekhar G Patel, President, CREDAI, said the decision reflects a calibrated approach in the current global economic environment. He noted that policy continuity will support market stability, while the revised GDP growth projection of 6.6 per cent reflects confidence in domestic economic activity.

Several developers said steady rates would improve financial visibility for ongoing projects and help maintain demand momentum. They added that infrastructure-led growth, organised developments and demand for larger and premium homes are expected to continue supporting residential sales.

Commercial real estate stakeholders also viewed the decision positively, saying stable borrowing costs would aid leasing, expansion and capital deployment decisions across office, retail and mixed-use assets. Developers said this environment supports investment planning and healthier absorption in key urban markets.

Industry voices, however, noted that continued policy support will be important for affordable housing, where demand remains more sensitive to borrowing costs. Overall, the sector expects stable financing conditions, resilient domestic growth and infrastructure expansion to sustain real estate activity in the coming quarters.


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The Reserve Bank of India has kept the repo rate unchanged at 5.25 per cent, maintaining a neutral policy stance amid global uncertainty, inflation concerns and volatility linked to the West Asia conflict. The decision has been welcomed by the real estate sector, which expects stable borrowing costs to support buyer demand and project execution.Industry leaders said the policy continuity will help sustain confidence among homebuyers, investors and developers across residential and commercial segments. Stable rates are expected to keep home loan costs broadly steady, supporting long-term purchase decisions, especially in mid-income, premium and first-time buyer categories.Shekhar G Patel, President, CREDAI, said the decision reflects a calibrated approach in the current global economic environment. He noted that policy continuity will support market stability, while the revised GDP growth projection of 6.6 per cent reflects confidence in domestic economic activity.Several developers said steady rates would improve financial visibility for ongoing projects and help maintain demand momentum. They added that infrastructure-led growth, organised developments and demand for larger and premium homes are expected to continue supporting residential sales.Commercial real estate stakeholders also viewed the decision positively, saying stable borrowing costs would aid leasing, expansion and capital deployment decisions across office, retail and mixed-use assets. Developers said this environment supports investment planning and healthier absorption in key urban markets.Industry voices, however, noted that continued policy support will be important for affordable housing, where demand remains more sensitive to borrowing costs. Overall, the sector expects stable financing conditions, resilient domestic growth and infrastructure expansion to sustain real estate activity in the coming quarters.

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