New Delhi, June 05, 2026: The Reserve Bank of India’s decision to maintain the repo rate at 5.25% and retain its neutral policy stance has been widely welcomed by real estate stakeholders, who view the move as a prudent step towards preserving economic stability amid rising geopolitical tensions and global market volatility. Industry leaders believe that stable interest rates will continue to support homebuyer confidence, housing demand and investment activity across residential and commercial segments. However, developers have also expressed concerns over the impact of the ongoing West Asia conflict, which has triggered a rise in energy prices, supply chain disruptions and escalating construction costs. While the sector remains optimistic about its long-term growth prospects, industry experts have emphasized the need for continued government support through infrastructure investments, affordable housing incentives, GST rationalisation and faster approvals to help mitigate external headwinds and sustain growth momentum.
Mr. Kamlesh Thakur, President, NAREDCO Maharashtra and Co-Founder & Managing Director, Srishti Group
“The RBI’s decision to keep the repo rate unchanged at 5.25% and maintain a neutral stance reflects a balanced and prudent approach amid prevailing economic uncertainties. While monetary policy stability provides confidence to the real estate sector, the continuing West Asia crisis and escalating geopolitical tensions are creating significant cost pressures for developers. Rising energy prices, disruptions in global supply chains, and higher transportation costs have led to a sharp increase in the prices of key construction materials such as steel and cement, while also pushing up the landing costs of imported inputs. These factors are likely to impact project viability and housing affordability in the coming months.
In this environment, continued policy and fiscal support from the government will be crucial to sustain growth momentum in the sector. Alongside infrastructure investments, affordable housing incentives, faster approvals and liquidity support, proactive GST rationalisation for the real estate sector can play a transformative role. Rationalising GST on construction inputs and addressing input tax credit inefficiencies would help reduce project costs, improve housing affordability and support faster project execution.
Given the strong multiplier effect of real estate on employment generation and overall economic growth, timely government intervention can help mitigate external headwinds and sustain demand across housing segments. Without adequate support, there remains a possibility of demand moderation and slower momentum in certain segments of the market. Despite the current challenges, the Indian real estate sector remains fundamentally resilient and well-positioned for long-term growth, supported by strong end-user demand, rapid urbanisation and a conducive policy framework.”
Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The RBI’s policy decision underscores the importance of balancing growth with inflation management at a time when geopolitical tensions and energy price volatility are influencing global markets. An unchanged repo rate provides continuity and predictability for both homebuyers and investors. Residential demand has remained healthy across key urban markets, and stable borrowing costs should support buyer confidence. If inflation remains contained and economic fundamentals stay strong, the real estate sector is well positioned to maintain momentum through the second half of the year.”
Mr. Rohan Brahmdev Shukla, Director and Chief Civil Officer, DGS Group
“The RBI’s decision to maintain the repo rate and neutral stance sends a reassuring message that macroeconomic stability remains a priority. For developers involved in redevelopment and urban housing projects, stable financing conditions are essential for planning and execution. The Governor’s observation that inflation pressures have had limited domestic pass-through is encouraging, although the industry will remain watchful of any upward movement in inflation in the coming quarters. Overall, the policy supports continuity in housing demand and project development.”
Mr. Shilpin Tater, Managing Director, Superb Realty
“The RBI’s decision to maintain the repo rate at 5.25% and retain a neutral stance reflects a balanced approach towards supporting economic growth while remaining vigilant on inflationary pressures arising from global geopolitical developments. For the commercial real estate sector, policy stability is a significant positive as it provides businesses, occupiers and investors with greater confidence in their expansion and investment decisions.
India’s office, warehousing and retail real estate segments have demonstrated strong resilience, supported by robust domestic consumption, growing corporate activity and sustained demand from global capability centres (GCCs). While rising energy prices and supply chain disruptions may exert some pressure on construction and operating costs, the sector’s long-term fundamentals remain strong. Stable interest rates will help maintain investment momentum, support leasing activity and encourage the development of high-quality commercial assets across key growth markets.”
Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“The RBI’s decision to hold the repo rate at 5.25% while retaining a neutral stance is a measured move in the current global context. For the real estate sector, this continuity is positive because it keeps financing conditions broadly stable for homebuyers and developers alike. Mumbai’s housing market has continued to demonstrate resilience, and steady interest rates help sustain purchase decisions, especially in the premium and upper-mid segments. We appreciate the RBI’s focus on inflation management while ensuring that growth momentum is not disrupted.”
Mr. Dhruman Shah, Promoter, Ariha Group
“The RBI has taken a prudent approach by prioritising stability amid geopolitical and supply chain uncertainties. For real estate, an unchanged repo rate helps preserve affordability and buyer confidence. The market has shown resilience despite global volatility, and stable policy conditions should support continued traction in residential demand. We also welcome the RBI’s acknowledgement that India’s economic fundamentals are stronger than in previous periods of global turbulence, which bodes well for long-term investment in real estate.”
Mr. Nihar Jayesh Thakkar, Founder, The Mandate House Private Limited
“The RBI’s decision to keep rates unchanged while maintaining a neutral stance reflects a balanced reading of the economy. For the real estate ecosystem, predictability in the interest rate environment is crucial because it influences homebuyer sentiment, financing decisions and investment planning. The central bank’s confidence in India’s resilience amid global disruptions is encouraging. As long as inflation remains broadly contained, we expect residential demand, especially in well-connected urban micro-markets, to remain healthy and supportive of sustained sectoral growth.”
“The RBI’s decision to keep the repo rate unchanged at 5.25% and maintain a neutral stance reflects a balanced and prudent approach amid prevailing economic uncertainties. While monetary policy stability provides confidence to the real estate sector, the continuing West Asia crisis and escalating geopolitical tensions are creating significant cost pressures for developers. Rising energy prices, disruptions in global supply chains, and higher transportation costs have led to a sharp increase in the prices of key construction materials such as steel and cement, while also pushing up the landing costs of imported inputs. These factors are likely to impact project viability and housing affordability in the coming months.
“The RBI’s policy decision underscores the importance of balancing growth with inflation management at a time when geopolitical tensions and energy price volatility are influencing global markets. An unchanged repo rate provides continuity and predictability for both homebuyers and investors. Residential demand has remained healthy across key urban markets, and stable borrowing costs should support buyer confidence. If inflation remains contained and economic fundamentals stay strong, the real estate sector is well positioned to maintain momentum through the second half of the year.”
“The RBI’s decision to maintain the repo rate and neutral stance sends a reassuring message that macroeconomic stability remains a priority. For developers involved in redevelopment and urban housing projects, stable financing conditions are essential for planning and execution. The Governor’s observation that inflation pressures have had limited domestic pass-through is encouraging, although the industry will remain watchful of any upward movement in inflation in the coming quarters. Overall, the policy supports continuity in housing demand and project development.”
“The RBI’s decision to maintain the repo rate at 5.25% and retain a neutral stance reflects a balanced approach towards supporting economic growth while remaining vigilant on inflationary pressures arising from global geopolitical developments. For the commercial real estate sector, policy stability is a significant positive as it provides businesses, occupiers and investors with greater confidence in their expansion and investment decisions.
“The RBI’s decision to hold the repo rate at 5.25% while retaining a neutral stance is a measured move in the current global context. For the real estate sector, this continuity is positive because it keeps financing conditions broadly stable for homebuyers and developers alike. Mumbai’s housing market has continued to demonstrate resilience, and steady interest rates help sustain purchase decisions, especially in the premium and upper-mid segments. We appreciate the RBI’s focus on inflation management while ensuring that growth momentum is not disrupted.”
“The RBI has taken a prudent approach by prioritising stability amid geopolitical and supply chain uncertainties. For real estate, an unchanged repo rate helps preserve affordability and buyer confidence. The market has shown resilience despite global volatility, and stable policy conditions should support continued traction in residential demand. We also welcome the RBI’s acknowledgement that India’s economic fundamentals are stronger than in previous periods of global turbulence, which bodes well for long-term investment in real estate.”
“The RBI’s decision to keep rates unchanged while maintaining a neutral stance reflects a balanced reading of the economy. For the real estate ecosystem, predictability in the interest rate environment is crucial because it influences homebuyer sentiment, financing decisions and investment planning. The central bank’s confidence in India’s resilience amid global disruptions is encouraging. As long as inflation remains broadly contained, we expect residential demand, especially in well-connected urban micro-markets, to remain healthy and supportive of sustained sectoral growth.”
Corporate Comm India (CCI Newswire)
