In a widely expected move, the Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.5 per cent during its August 2025 monetary policy review. With inflation softening and the broader economy showing resilience, industry leaders across the real estate and finance sectors have lauded the RBI’s decision for maintaining predictability and supporting buyer sentiment, especially ahead of the festive season. The RBI’s decision to maintain the benchmark repo rate at 5.5 per cent has struck a chord with the real estate industry, which views the move as a continuation of its calibrated monetary strategy amid easing inflation and global economic uncertainties. Prashant Sharma, President, NAREDCO Maharashtra, welcomed the central bank’s cautious yet supportive stance. “The RBI’s decision to maintain the repo rate at 5.5% despite easing inflation reflects a cautious yet balanced approach to managing global headwinds and domestic stability… the industry looks forward to a calibrated rate cut in upcoming reviews to further support growth, especially in the affordable and mid-income housing segments.” Echoing the sentiment, Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, noted, “The real estate sector has shown resilience despite global uncertainties… the RBI’s decision to hold the rate steady keeps the environment predictable and EMIs affordable.” Mr. Vikas Jain, CEO, Labdhi Lifestyle and President, NAREDCO Maharashtra NextGen, expressed mixed sentiment. “Affordable housing and first-time homebuyers remain extremely interest rate sensitive… a cut would have significantly pushed housing demand forward.” While a cut might have bolstered short-term sentiment, developers agree that stability has its own benefits. Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers, said, “Stability in rates does support long-term planning for both developers and homebuyers… a softer interest rate regime would provide the real boost required for deeper market penetration.” Mr. Dhruman Shah, Promoter, Ariha Group, shared a similar viewpoint: “While this helps developers plan without sudden shifts in financial costs, we anticipate a pro-growth signal in the next review, especially to give a push to the affordable housing segment.” Mr. Nihar Jayesh Thakkar, Founder, The Mandate House, added, “This offers continuity in buyer behaviour and home loan affordability… a future rate cut would help unlock fence-sitters and attract a new wave of aspirational buyers.” Harsh Jagwani, Managing Director at Notandas Realty, also welcomed the move. We welcome the RBI's move to keep the repo rates unchanged. The previous rate cut has led to a positive impact in the real estate market and this announcement will help in keeping the momentum going for the sector. As the US plans to impose steep tariffs on Indian imports, the RBI's cautious stance will help in maintaining stability across the sector. As per a recent CREDAI-CRE Matrix report, India's housing sales touched INR 3.6 lakh crores in H1, 2025. Lending rates have already softened and unchanged repo rates will offer much relief to aspiring homebuyers and investors. Affordable borrowing will continue to drive growth across the residential segments, which in turn will amplify the buoyant sentiment in the market. Binitha Dalal, Founder & Managing Partner, Mt. K Kapital, echoed this view, stating, “The RBI’s decision to maintain the repo rate at 5.5% reflects a calibrated approach to supporting macroeconomic stability. After three consecutive rate cuts, this pause shows a balanced stance, protecting inflation control while giving the credit cycle time to respond. For homebuyers, the stability in repo rates translates to continued affordability in home loan EMIs, which is critical for sustaining demand in the mid- and affordable housing segments. It also offers developers more predictability as they plan launches and financing strategies for the second half of the year.” Mr Mohit Goel, Managing Director, Omaxe Ltd., added, The RBI’s decision to maintain status quo on rates reinforces stability and supports long-term sentiment in the real estate sector. While affordability remains a key factor for homebuyers, especially in emerging cities, sustained policy consistency allows both developers and consumers to plan with greater confidence. We’re seeing strong traction in Tier-2 markets, where infrastructure growth and improving connectivity are translating into real demand. The current rate environment is well-aligned with the momentum we’re witnessing across these regions and expecting this to rise specially during the festive season.” The festive season — traditionally a peak time for residential sales — is expected to benefit from the policy continuity. Ms Amrita Gupta, Director, Manglam Group, noted, “By maintaining the repo rate, the RBI has sent a reassuring signal to both buyers and developers. Festive quarters are a high-conversion period for residential sales, and stable interest rates help buyers make faster purchase decisions. After a phase of easing, this pause gives the market a chance to consolidate and absorb the gains. In Tier 2 and Tier 3 cities in particular — where rate sensitivity is higher — this decision will support sustained traction. We see it as a positive step in maintaining momentum without creating sudden shifts in buyer sentiment.” Adding to this, Mr Aditya Kushwaha, CEO and Director, Axis Ecorp, said, The RBI’s decision to hold rates provides continued stability and is well-timed with the upcoming festive season. We’re seeing heightened interest from both domestic buyers and NRIs, particularly in the holiday home segment where lifestyle aspirations are meeting sound investment logic. Fractional ownership, in particular, is gaining traction as it allows access to premium properties with a lower capital outlay. The steady rate environment reinforces buyer confidence and supports long-term planning in emerging markets like Goa.” From a market outlook standpoint, Shishir Baijal, Chairman and Managing Director, Knight Frank India, called it a measured policy move. “This policy continuity, coupled with easing credit conditions and steady economic growth can provide a boost to the affordable housing categories.” Sudhir Pai, CEO, Magicbricks, noted the psychological impact on homebuyers: “While consumers were hoping for a rate cut to ease home loan EMIs, the unchanged stance ensures affordability doesn’t worsen — thereby keeping demand for residential real estate intact.” Pradeep Aggarwal, Founder & Chairman, Signature Global (India), viewed the current stance as conducive for momentum. “This is expected to sustain consumer confidence and support ongoing momentum in key sectors, including real estate.” Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, observed: “Stable interest rates and the continued transmission of past rate cuts are expected to keep housing demand buoyant—particularly in the mid and premium segments.” Sushil Bedarwal, CMD, Bedarwal Group, provided a forward-looking perspective: “If macroeconomic conditions remain stable and supportive, we anticipate the RBI may resume the rate cut cycle with a further reduction of 25–50 basis points during the remainder of this calendar year.” Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, linked the RBI’s stance to festive optimism. “We expect retail credit demand—particularly for home and personal loans—to gain further momentum in the coming months, driven by the upcoming festive season.” From a legacy developer’s lens, Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD - Shapoorji Pallonji Real Estate, said, “At Shapoorji Pallonji Real Estate, we believe this measured stance by the central bank strikes the right balance and will continue to support momentum in housing demand.” Meanwhile, Ashok Mittal, MD & CEO, BillMart Fintech, appreciated the RBI’s cautious optimism. “While the rate remains unchanged, we hope the focus on liquidity and sectoral support—especially for MSMEs and growth-driven businesses—continues.” Payas Agarwal, Director, Great Value Realty, also highlighted macroeconomic stability: “With headline inflation easing to a 77-month low of 2.1%… this economic stability will accelerate housing demand across both residential and commercial segments in the coming quarters.” As India enters the second half of the financial year with the festive season around the corner, industry stakeholders have interpreted the RBI’s decision as one that reinforces economic resilience, preserves affordability, and strengthens buyer confidence. While hopes for a rate cut remain on the horizon, the central bank’s emphasis on stability is widely seen as beneficial for long-term growth in the real estate sector. Note: This is a developing story.