The Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.50% for the 11th consecutive time has elicited a positive response from the real estate sector. In his post-Monetary Policy address, RBI Governor Shaktikanta Das emphasised the need for price stability amid a reported slowdown in GDP growth and a spike in inflation to 6.2%, exceeding the central bank’s threshold.
Key players in the real estate industry have welcomed the move, highlighting its potential to stabilise borrowing costs and stimulate growth. Sandeep Mangla, Managing Director of Forteasia Realty Pvt. Ltd., remarked, “By keeping the repo rate unchanged, the RBI has ensured fixed borrowing costs for developers, enabling better project execution. This stability has already contributed to an 18% yearly decline in unsold stock as the market adjusts.” Aman Gupta, Director of RPS Group, noted, “The RBI’s consistent approach has been instrumental for the real estate ecosystem. Steady home loan rates have sparked a 12% rise in housing inquiries this quarter.” Echoing this sentiment, Anurag Goel of Goel Ganga Developments observed, “Homebuyers are gaining a significant advantage with loan rates stabilised at 8.5–9%, making EMIs more manageable. This policy has expanded the pool of potential buyers by 15% in tier-2 cities.”
Ashish Agarwal, CEO of Enzyme Office Spaces, added, “With plateauing construction costs and stable interest rates, developers can now focus on timely project delivery, which has seen a 22% increase in completion rates over the past year.” Kaushal Agarwal of The Guardians Real Estate Advisor highlighted the RBI’s strategic balance between liquidity and inflation control, stating, “Lowering the CRR to 4% will improve bank lending capacity, bolstering real estate. While a rate cut would have further boosted demand, current measures sustain buyer confidence and affordability.” Real estate contributes approximately 7% to India’s GDP, and stable policies like these not only aid the sector but also support allied industries. Experts agree that sustained liquidity and controlled inflation will enable the real estate market to drive broader economic growth, even as the GDP forecast for FY25 is revised to 6.6%.