Industry participants across residential and commercial real estate segments have welcomed the decision, stating that stable borrowing costs are crucial for maintaining investor confidence, supporting project execution, and ensuring sustained housing demand. The unchanged policy rate is also expected to provide continuity in financial planning for both developers and homebuyers, while preserving overall market predictability.
Sahil Agarwal, Chief Executive Officer of Nimbus Group, stated that the decision is prudent and timely in the context of ongoing geopolitical uncertainty. He noted that elevated crude oil prices and persistent inflation risks continue to influence global markets. According to him, the unchanged rate offers relief and ensures continuity in financial planning for the real estate sector, allowing ongoing projects to proceed without disruption from rising financing costs, while still leaving room for future policy adjustments if required. He added that the central bank has opted for caution over reaction, a stance the industry welcomes.
Deepak Kapoor, Director of Gulshan Group, said that the decision reflects confidence in India’s growth trajectory at a time of global economic headwinds. He emphasized that for homebuyers, stability in interest rates is more significant than marginal changes in basis points, as it directly impacts affordability and long-term purchasing decisions. He added that consistent borrowing conditions support rising demand for larger homes, improved lifestyles, and integrated residential communities.
B.K. Malagi, Vice Chairman of Experion Developers, highlighted that the real estate sector has shown strong resilience in recent years. He stated that a steady repo rate strengthens this momentum by supporting sustained sales activity, consistent project launches, and improved absorption levels in the housing market, ensuring that growth continues without interruption.
Sehaj Chawla, Managing Director of TREVOC Group, noted that predictability in borrowing costs plays a central role in sustaining real estate demand, as the sector is closely tied to consumer sentiment. He stated that maintaining the repo rate at 5.25 percent ensures that gains from a stable interest rate environment remain intact. He also pointed to infrastructure-led growth in the National Capital Region, particularly emerging corridors, as a long-term driver of residential development supported by stable financial conditions.
Harinder Singh Hora, Founder Chairman of Reach Group, stated that commercial real estate operates on long investment cycles where stability in financial policy is essential. He noted that office occupiers, retailers, and institutional investors prefer predictable conditions when making expansion decisions. According to him, the unchanged repo rate preserves confidence in business planning while avoiding sudden increases in financing costs, particularly relevant for business parks, mixed-use developments, and Grade-A commercial assets.
Saurab Saharan, Group Managing Director of HCBS Developments Limited, said the decision is positive for the sector as it ensures stable borrowing conditions and greater certainty for both developers and homebuyers. He added that it enables more effective planning of project launches and execution while strengthening buyer confidence in long-term homeownership decisions.
Ashwani Kumar of Pyramid Infratech stated that the policy continuity provides reassurance for the housing sector, where sentiment is closely linked to borrowing costs. He noted that stable interest rates enhance predictability in home loans, enabling buyers to make informed long-term commitments while also supporting liquidity planning and smoother execution for developers.
The Reserve Bank of India’s steady policy stance is being seen as a reinforcing factor for India’s real estate ecosystem, ensuring continuity in growth momentum while maintaining financial stability in an uncertain global environment.
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