“The RBI’s decision to maintain the repo rate at 5.25% reinforces confidence in an already resilient residential real estate market by providing certainty around borrowing costs and creating a stable environment for homebuying decisions. The broad consensus among economists that the repo rate is likely to remain at 5.25% through the remainder of 2026 further supports homebuyer sentiment, financing decisions, and healthy residential demand over the next 6–12 months. For homebuyers, predictable EMIs improve purchase planning and affordability, while developers benefit from greater visibility in project execution, financing, and long-term capital allocation. The most supportive RBI policy signal for the housing sector would be a continued commitment to price stability, a predictable interest rate trajectory, faster transmission of policy rates into home loan pricing by banks, and adequate systemic liquidity to ensure efficient credit flow. Together, these measures would improve housing affordability, make home loans more accessible, strengthen end-user demand, and enable developers to plan investments, financing and project execution with greater confidence. A stable and well-transmitted monetary policy environment will play a pivotal role in sustaining long-term growth across India’s residential real estate sector.”
RBI MPC Repo Rate on behalf of Dharmendra Raichura, VP & Head of Finance, Ashar Group
