RBI’s Balanced Approach Will Support Housing Demand Amid Global Uncertainty

The Reserve Bank of India’s latest monetary policy announcement of keeping the repo rate unchanged at 5.25 per cent reflects a calibrated approach to balancing inflation risks with sustained economic growth, offering a sense of stability to the real estate sector amid ongoing global uncertainties. The policy underscores the resilience of the Indian economy despite external pressures such as volatile crude oil prices and geopolitical tensions. For the real estate sector, a steady interest rate environment and positive growth outlook are expected to support buyer sentiment, sustain housing demand across segments, and reinforce investor confidence in the sector as a long-term asset class.

Experts say stable rates combined with growth optimism could give a timely push to the real estate sector amidst the global uncertainties.

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group
“The RBI’s cautious stance, in light of global geopolitical tensions and inflationary risks, is a prudent move. The real estate sector benefits greatly from policy stability, and the current outlook provides that reassurance. With inflation projected at manageable levels and growth holding firm, we anticipate sustained traction in housing demand, particularly in emerging micro-markets and affordable housing segments, where affordability remains key.”

Rohan Shukla, Director and Chief Civil Officer, DGS Group
“With infrastructure and construction activity closely tied to economic growth, the RBI’s positive GDP outlook is a strong signal for the sector. While cost pressures due to global factors like rising crude prices remain, the steady policy environment will help maintain project viability and execution momentum. We expect continued focus on timely delivery and cost optimization across the industry.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The RBI’s decision reflects a fine balance between inflation management and sustaining growth momentum amid global uncertainties. While rising crude prices and currency pressures remain concerns, India’s economic resilience continues to stand out. For the real estate sector, stability in rates coupled with a strong GDP outlook of 6.9% will support buyer confidence, especially in the mid-income and premium housing segments. We expect end-user demand to remain steady, with homebuyers continuing to take a long-term view on investments.”

Shilpin Tater, Managing Director, Superb Realty
“The policy underscores the RBI’s commitment to maintaining macroeconomic stability during uncertain global conditions. The real estate sector, particularly commercial and mixed-use developments, will benefit from continued economic momentum and business confidence. As corporate expansion and leasing activity remain robust, we foresee sustained demand for quality commercial assets, especially in key urban hubs.”

Shraddha Kedia-Agarwal, Director, Transcon Developers
“The RBI’s outlook highlights India’s strong growth fundamentals despite global headwinds. For the housing sector, a stable interest rate environment is critical in sustaining buyer sentiment. With inflation expected to remain within a manageable range, we believe homebuyers, especially in the luxury and aspirational segments, will continue to make investment decisions with confidence. This policy reinforces the sector’s positive momentum.”

Dhruman Shah, Promoter, Ariha Group
“The central bank’s measured approach is encouraging for the real estate industry. While inflationary pressures remain a watchpoint, the strong GDP growth outlook signals continued economic stability. This will have a positive ripple effect on real estate demand, particularly in urban and redevelopment-driven markets. Developers will continue to align offerings with evolving buyer preferences and affordability considerations.”

Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd.
“The RBI’s policy stance reflects a well-calibrated response to both domestic resilience and global volatility. Institutional and HNI investors are likely to remain bullish on real estate as an asset class, given its ability to hedge against inflation and deliver long-term value.”