NAREDCO Maharashtra, The Guardians Real Estate Advisory, DGS Group, Superb Realty, Transcon Developers, Ariha Group and The Mandate House react to RBI rate stability

Kamlesh Thakur, President, NAREDCO Maharashtra and Co Founder and Managing Director, Srishti Group; Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory; Rohan Brahmdev Shukla, Director and Chief Civil Officer, DGS Group; Shilpin Tater, Managing Director, Superb Realty; Shraddha Kedia Agarwal, Director, Transcon Developers; Dhruman Shah, Promoter, Ariha Group; and Nihar Jayesh Thakkar, Founder, The Mandate House Private Limited, share views on housing demand, affordability and construction costs after the RBI policy decision.

The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25 percent and retain a neutral policy stance has been welcomed by real estate stakeholders, who see the move as supportive for homebuyer confidence, housing demand and investment activity.
Industry leaders said stable borrowing costs are important for both residential and commercial real estate, especially as global uncertainty, the West Asia conflict, higher energy prices, supply chain disruptions and rising construction material costs continue to affect project economics.
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,” said Kamlesh Thakur, President, NAREDCO Maharashtra and Co Founder and Managing Director, Srishti Group.

He added that government support through infrastructure investments, affordable housing incentives, faster approvals, liquidity support and GST rationalisation would be important for sustaining growth. He said rationalising GST on construction inputs and addressing input tax credit issues could help reduce project costs and improve housing affordability.
“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,” said Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory.

“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,” said Rohan Brahmdev Shukla, Director and Chief Civil Officer, DGS Group.
“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,” said Shilpin Tater, Managing Director, Superb Realty.

He said India’s office, warehousing and retail real estate segments continue to be supported by domestic consumption, corporate activity and demand from global capability centres, while rising energy and supply chain costs may put pressure on construction and operating expenses.
“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,” said Shraddha Kedia Agarwal, Director, Transcon Developers.

“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,” said Dhruman Shah, Promoter, Ariha Group.
“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,” said Nihar Jayesh Thakkar, Founder, The Mandate House Private Limited.
Real estate leaders said the rate pause gives the sector short term stability, but policy support will be important as construction costs, imported input prices and logistics expenses remain under pressure.

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