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.

Next Story
Real Estate

Gaur City Mall Records Rs 100 Crore Monthly Sales in FY26

Gaur City Mall recorded monthly retail sales of more than Rs 100 crore consistently during FY 2025-26, strengthening its position as a leading retail and lifestyle destination in North India.The milestone was announced as the mall marked its seventh anniversary with ‘The Billion Celebration’, recognising its growth alongside retail partners, shoppers and other stakeholders.Spread across 8 lakh sq ft, the mall forms part of the larger Gaur City Township and was developed to provide shopping, entertainment and community facilities for residents. It has since expanded its reach beyond the tow..

Next Story
Real Estate

Mollo Noleggio Climbs 17 Places in Global IRN 100 Ranking

Mollo Noleggio has secured a place in the IRN 100 ranking for the second consecutive year, climbing 17 positions compared with the previous edition.Compiled annually by International Rental News, the official magazine of the European Rental Association, the ranking lists the world’s 100 largest vehicle and equipment rental companies by turnover.Mollo Noleggio entered the ranking for the first time in 2025, becoming the first Italian company specialising exclusively in rental services to be included. Its improved position reflects the company’s continued growth and expanding presence in the..

Next Story
Real Estate

Manglam Group Launches Rs 1,000 Cr PinkWest in West Jaipur

Manglam Group has launched PinkWest, a Rs 1,000 crore integrated commercial development on the Jaipur–Ajmer Highway in West Jaipur. The project has already achieved over Rs 300 crore in sales, reflecting strong investor interest in the city's emerging commercial corridor.Spread across nearly 13 lakh sq ft, PinkWest is being developed as a mixed-use destination featuring retail, office spaces, hospitality, dining, entertainment and lifestyle offerings. The project is expected to generate a development value of around Rs 1,500 crore upon completion, which is targeted for 2029, subject to const..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement