Summary of this article
RBI keeps repo rate unchanged.
Stable borrowing supports homebuyers.
CREDAI sees sustained housing growth.
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 per cent at its recent Monetary Policy Committee (MPC) meeting. This decision is expected to provide stability to the housing market by strengthening homebuyer confidence and supporting long-term growth in the real estate sector, according to CREDAI.
Shekhar Patel, president, Credai, said that the RBI’s decision comes at a crucial time when global economic uncertainties continue to weigh on markets. By maintaining the repo rates, the central bank has signalled policy continuity, which provides reassurance to both developers and homebuyers, he said.
Patel said: “The RBI's decision to maintain the repo rate at 5.25 per cent provides much-needed stability and reassurance for the real estate sector. Given the prevailing global uncertainties, maintaining the status quo sends a positive signal of confidence and policy continuity.”
“Despite supply-side disruptions in recent months due to the situation in West Asia, the housing market has continued to demonstrate remarkable resilience, reflecting strong underlying demand,” he added.
Stable Borrowing Costs Aid Demand
The decision to keep the repo rates stable provides a much-needed certainty for the real estate sector, where project development and home purchases involve long-term financial commitments. Predictable interest rates allow developers to plan their projects while allowing homebuyers to make informed borrowing decisions.
“Real estate is a long-gestation sector, and homebuyers make long-term financial commitments. Sustained economic growth, employment generation and continued infrastructure development remain the strongest drivers of housing demand,” Patel added.
Patel said that going forward, continued investment in infrastructure, coupled with stronger policy support for affordable housing, will further strengthen the sector’s long-term growth trajectory.
“Policy stability instils confidence across the housing ecosystem and is particularly significant for an industry where investment and homeownership decisions are made with a long-term perspective,” he further said.
Stable Repo Rate Expected to Strengthen Housing Demand
The RBI’s decision to keep the repo rate unchanged at 5.25 per cent is expected to provide a stable financial environment for prospective buyers. With predictable borrowing costs, home loan affordability has also improved, which would encourage buyers to make their purchase decisions with greater confidence.
Says Jitender Yadav, Director, Roots Developers: “Stability in borrowing costs will make home loans more accessible, which will increase demand from homebuyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets. We look forward to a pragmatic environment for the real estate industry.”
This move will dictate sustained development in the market, with stronger policy support for housing in place.
