Repo Rate Pause Supports Housing Market Stability
Real Estate

Repo Rate Pause Supports Housing Market Stability

The RBI Monetary Policy Committee’s decision to keep the repo rate unchanged is expected to support India’s residential real estate market amid geopolitical pressures, rising oil prices and higher construction costs, according to ANAROCK Group.

ANAROCK said the rate pause provides stability at a time when developers are facing supply-side inflation and some Middle Eastern investors have delayed housing purchases due to geopolitical uncertainty. Stable borrowing costs are expected to help buyers and developers manage affordability pressures.

According to ANAROCK Research, residential sales declined 7 per cent quarter-on-quarter to 101,675 units in Q1 2026, compared with 108,970 units in Q4 2025. Total sales value fell 5 per cent quarter-on-quarter to Rs 1.51 trillion.

However, demand remained stronger year-on-year. Residential sales volume rose 9 per cent and sales value increased 6 per cent over Q1 2025, when 93,280 units worth Rs 1.42 trillion were sold.

New launches outpaced sales during the quarter, with supply rising 2 per cent sequentially and 26 per cent year-on-year to over 126,265 units. Unsold inventory increased 4 per cent quarter-on-quarter and 7 per cent year-on-year, crossing 601,000 units by the end of Q1 2026.

ANAROCK said a stable and affordable financing environment will be important to absorb rising inventory. It added that the central bank’s efforts to stabilise the rupee could support imports of fixtures and fittings in the luxury housing segment, which accounted for 20 per cent of housing supply in Q1 2026.

The RBI Monetary Policy Committee’s decision to keep the repo rate unchanged is expected to support India’s residential real estate market amid geopolitical pressures, rising oil prices and higher construction costs, according to ANAROCK Group.ANAROCK said the rate pause provides stability at a time when developers are facing supply-side inflation and some Middle Eastern investors have delayed housing purchases due to geopolitical uncertainty. Stable borrowing costs are expected to help buyers and developers manage affordability pressures.According to ANAROCK Research, residential sales declined 7 per cent quarter-on-quarter to 101,675 units in Q1 2026, compared with 108,970 units in Q4 2025. Total sales value fell 5 per cent quarter-on-quarter to Rs 1.51 trillion.However, demand remained stronger year-on-year. Residential sales volume rose 9 per cent and sales value increased 6 per cent over Q1 2025, when 93,280 units worth Rs 1.42 trillion were sold.New launches outpaced sales during the quarter, with supply rising 2 per cent sequentially and 26 per cent year-on-year to over 126,265 units. Unsold inventory increased 4 per cent quarter-on-quarter and 7 per cent year-on-year, crossing 601,000 units by the end of Q1 2026.ANAROCK said a stable and affordable financing environment will be important to absorb rising inventory. It added that the central bank’s efforts to stabilise the rupee could support imports of fixtures and fittings in the luxury housing segment, which accounted for 20 per cent of housing supply in Q1 2026.

Related Stories

Gold Stories

Next Story
Equipment

BEML Wins GeM Award for Highest MSE Order Value

BEML Limited has received the “Maximum Order Value to MSEs” award at the 10th Foundation Day celebrations of the Government e-Marketplace (GeM) held at Bharat Mandapam, New Delhi.Union Minister of Commerce and Industry Piyush Goyal presented the award, which was received on behalf of BEML by Anil Jerath, Director (Finance).The recognition acknowledges BEML's efforts to strengthen procurement from Micro and Small Enterprises (MSEs) through the GeM platform.BEML said its procurement initiatives are aimed at encouraging greater participation of MSEs in public procurement and supporting the gr..

Next Story
Equipment

BKT to Showcase Advanced Off-Highway Tyres at Bauma ConExpo

Balkrishna Industries Ltd (BKT) will showcase its latest off-highway tyre solutions at Bauma ConExpo India 2026, scheduled from September 15-18 at the India Expo Centre, Greater Noida.The company will display a range of application-specific tyres for construction, mining and industrial operations at Hall 12, Booth No. 1. Key products will include the EARTHMAX SR 30 for loaders and articulated dump trucks and the AIROMAX AM 27 for mobile cranes.BKT will also showcase MINE FORCE, EARTHMAX EXPERTO GD1, XL GRIP NEO, DYNA HAUL, CONSTEER and EARTHMAX SR423. The tyres are designed to operate under he..

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement