India’s residential market has remained resilient over the last few quarters, supported by stable demand, better visibility on incomes and infrastructure-led growth across urban corridors. ANAROCK Research said the new launches saw a 7 per cent YoY rise, demonstrating a resilient end-user demand amidst global concerns. Sales in the top seven cities totalled about 90,715 units in Q2 2026.
 |
Stable EMIs and borrowing costs support sustained housing demand across India
Amidst this, the Reserve Bank of India’s decision to retain the repo rate at 5.25 per cent will aid the ongoing momentum in the Indian residential real estate industry. It is a sign of policy stability in a world of global uncertainty.
Abhishek Trehan, Executive Director, Trehan IRIS, said, “The RBI’s announcement to maintain the status quo on the repo rate was largely expected. More importantly, it reflects the fact that the market has now adjusted well to the current interest-rate environment. Homebuyers are increasingly taking a long-term view of their purchase decisions, while developers continue to plan investments with greater visibility. The steady demand witnessed over recent quarters suggests that purchase decisions are increasingly anchored in economic confidence and product value.”
The central bank’s calibrated approach implies continuity, not disruption, as energy prices and geopolitical concerns keep stoking inflation. Such stability is important in a sector like real estate to keep buyer sentiment and developer confidence. This impact is particularly significant for homebuyers who are highly dependent on home loans to fund their purchase. Keeping the repo rate unchanged with keep loan EMIs stable, and there will be no pressure from rising borrowing costs, placing buyers in a better position to plan for the long term.
Sehaj Chawla, Managing Director, TREVOC Group, said, “The announcement reinforces an important message: the RBI remains confident about the resilience of the Indian economy and has decided to maintain the status quo on the repo rate. This approach is well suited to a sector like real estate, where buying decisions are rarely driven by short-term interest-rate movements alone. Strong domestic demand, improving economic prospects and a stable financing environment should continue to support healthy momentum across the residential market.”
The unchanged rates provide continuity in financing conditions, enabling developers to better plan project timelines and pricing strategies. This is relevant in mid-income and upper mid-income housing, where both construction financing and buyer affordability are closely linked to interest rates.
Mitul Jain, Managing Director, SPJ Group, said, “The RBI’s decision to keep the repo rate unchanged at 5.25% while retaining a neutral stance is a balanced approach amidst the evolving dynamics of inflationary pressures and global uncertainties, which continue to shape the economic outlook. For homebuyers, it brings stability and positivity as home loan interest rates and EMIs are expected to remain largely unchanged. While we believe a rate cut could have further improved affordability and encouraged first-time homebuyers, policy continuity provides confidence to both buyers and developers, enabling informed long-term decisions.”
The policy stance keeps liquidity conditions supportive without triggering excessive demand-side pressure. This balance is critical at a time when the sector is witnessing healthy, end-user-driven growth rather than speculative activity.
Sanjay Sharma, Director, SKA Group, said, “The RBI’s decision to maintain the repo rate at 5.25% amidst inflationary risks stemming from global crude price movements shows a continued commitment to a patient and data-driven policy approach. This stance helps to keep borrowing costs steady and keep liquidity conditions accommodative for homebuyers and developers. A rate cut might have given housing demand a further boost, but staying the course looks like a reasonable approach amid the evolving macro picture.”
Mayank Jain, CEO, KREEVA, added, “Consistency in interest rates has quietly become one of the biggest contributors to the housing market’s resilience. By keeping the repo rate unchanged, the RBI has ensured that buyers and developers can continue making long-term decisions without having to revisit their financial assumptions. The strength of the residential market over recent quarters suggests that demand is increasingly being driven by product quality, location and long-term value. Stable borrowing conditions simply allow those underlying drivers to remain in focus.”
Beyond the metro cities, stable interest rates are also supporting demand in emerging regional markets, where end-user purchases are rising alongside infrastructure development and urbanisation.
Gurinder Bhatti, Chairman and Managing Director, GB Realty, said, “By maintaining the repo rate at 5.25%, the RBI has ensured stability at a time when the housing sector continues to benefit from healthy end-user demand and improving buyer sentiment. Punjab is no longer solely an NRI-driven market as we are witnessing a growing base of local homebuyers looking to upgrade to organised, high-quality developments. Stable interest rates provide predictability in borrowing costs, strengthen buyer confidence, and encourage long-term investment in housing.”
Overall, the RBI’s decision has reinforced a stable operating environment for the residential real estate sector. Predictable financing costs and stable EMIs continue to support purchase decisions among mid-segment homebuyers, helping sustain momentum in residential demand over the coming months.
