In a move that cheers prospective homeowners, the RBI has opted to hold its key repo rate at 5.25%. Real estate leaders see this as a boon for mortgage stability in uncertain times.
‘Great news for developers and buyers,’ said Westin’s CEO Srinivas Rao (FRICS). With building expenses climbing, steady lending rates keep home loans attractive. This decision cushions the blow from rising costs and allows time for strategic adjustments. Rao hinted at possible future increases, urging vigilance.
Knight Frank India’s Shishir Baijal praised the RBI’s neutral policy. It maintains buyer affordability and supports developer forecasting. ‘In volatile economic signals, rate stability is a positive beacon,’ he emphasized. This should sustain demand and foster market trust in the near future.
Experts flag ongoing hurdles like supply bottlenecks and cost inflation affecting builds. Colliers India’s Vimal Nadar warned of consumption dips in housing, retail, and hospitality, hitting lower-income groups hardest. Still, strong macroeconomic bases will bolster realty’s recovery.
Adopting a cautious ‘wait and watch’ amid Middle East conflicts, RBI projects 4.6% inflation and 6.9% GDP expansion by 2026-27. The unchanged rate signals confidence in India’s growth trajectory while prioritizing stability.
