Hyderabad, Apr 8 (TNT): Real estate industry leaders on Wednesday welcomed the Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25 per cent, saying the move reflects confidence in the strength of the Indian economy and will support stability in the property sector.
Reacting to the monetary policy announcement, Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa at CBRE, said the RBI’s decision demonstrates the resilience and momentum of the Indian economy while reinforcing macroeconomic stability amid global uncertainties.
He said the central bank’s focus on macroeconomic stability and inflation management reflects a calibrated approach amid global uncertainties and signals strong domestic fundamentals.
According to him, the continuation of stable borrowing costs will be beneficial for the real estate sector, as predictable and manageable EMIs help sustain homebuyer sentiment.
He added that moderation in inflation by the end of the year could further spur business expansion, improve consumer purchasing power and boost demand across both residential and commercial real estate segments.
Echoing similar views, Lata Pillai, Senior Managing Director and Head – Capital Markets, India at JLL, said the RBI’s decision to hold the repo rate steady for the second consecutive time comes amid geopolitical tensions that have clouded the global growth outlook.
She said India’s economic fundamentals remain strong, as reflected in the RBI retaining its neutral stance, while manageable crude oil supplies and inflation remaining below target have provided policy headroom.
However, she cautioned that rising energy prices, weather-related disruptions, supply chain dislocations and secondary shocks may pose challenges to growth and inflation projections.
Referring to the West Asia conflict, Pillai said despite global uncertainties, India continues to demonstrate resilience, with GDP growth projected at 7.6 per cent for FY26 and 6.9 per cent for FY27.
She said the repo rate stability indicates the RBI’s confidence in India’s ability to navigate global challenges while balancing inflation, growth and currency management.
Pillai further noted that the stable interest rate environment will help sustain momentum in the real estate market, even as rising energy prices and supply chain disruptions may push up construction costs.
She observed that sluggish residential sales in the first quarter of 2026 indicate that affordability pressures and uncertainty are beginning to impact buyer sentiment, adding that stakeholders will need to work together to maintain market momentum in the coming quarters.
Umesh Gowda H A, Chairman and Founder of Sanjeevini Group, said the RBI’s decision to hold rates steady amid geopolitical tensions is aimed at stabilising the interest rate environment while keeping a close watch on inflation and growth.
He said a stable interest rate regime bodes well for the real estate sector, with homebuyers continuing to benefit from earlier rate cuts, while sustained public spending and a buoyant office market are expected to support stable growth in the residential segment.
Ankur Jalan, CEO of Golden Growth Fund, welcomed the RBI’s move, saying it reflects the central bank’s continued monitoring of inflation and growth dynamics amid the ongoing conflict in West Asia.
He said a stable policy environment would support India’s economic growth and help attract capital into financialised investment products such as Alternative Investment Funds, while also offering High Net-Worth Individuals and Non-Resident Indians opportunities to realign investments and safeguard returns.
Meanwhile, Lalit Parihar, Managing Director of Aaiji Group, said the housing market is undergoing correction after years of record sales and that global conflicts have added to sectoral challenges.
He noted that keeping rates unchanged would help strengthen confidence in the real estate sector by allowing borrowers to fully benefit from the transmission of earlier rate cuts.
Parihar added that supportive fiscal and monetary measures would help cushion the impact of economic shocks and provide momentum to the real estate sector going forward.
TNT TS
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