• Source:JND

The Reserve Bank of India’s decision to leave the repo rate unchanged may not bring immediate relief in the form of lower EMIs, but it has delivered stability, something the housing market values much, especially in such a situation when inflation is high and projected to remain higher throughout the year due to the ongoing crisis in the Middle East.

The six-member RBI MPC kept the repo rate unchanged at 5.25 per cent for the second time in 2026. The decision to keep the repo rate unchanged came as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis. The three-month-long conflict in West Asia has disrupted energy supplies, leading to a surge in crude oil prices.

Gives a clear picture for borrowing in near term

Homebuyers always track interest rates closely, and the latest policy offers a clearer picture of what their borrowing costs are likely to look like in the near term. Real Estate developers believe that price visibility often plays an important role in purchase decisions, particularly for families planning to buy a home through a loan.

According to them, the RBI's decision comes at a time when residential demand remains steady across several cities, supported by infrastructure improvements, better connectivity and a growing preference for owning a home rather than postponing the purchase.

Ashok Singh Jaunapuria, MD and CEO, SS Group, believes the policy brings much-needed confidence to buyers.

"For most homebuyers, the confidence to make a purchase is closely linked to the predictability of borrowing costs. Stability in rates allows buyers to plan their finances better and make long-term decisions with greater certainty. We continue to see healthy demand across residential markets and expect this trend to remain intact," he said.

While the policy was largely on expected lines, industry leaders note that the move is crucial as it came at a time when geopolitical developments continue to create uncertainty across sectors. Rising geopolitical tensions and concerns around inflation have made businesses more focused on predictability than aggressive policy shifts.

Aman Sarin, Director & CEO, Anant Raj Limited, said stability in rates is particularly important in the current environment.

"Given the uncertainties in West Asia and their impact on costs, a stable interest rate environment is a welcome move. For many homebuyers today, affordability is not only about lower rates but also about knowing what their monthly commitments will look like. That certainty often encourages people to move ahead with a purchase decision," he said.

Demand is increasingly being driven by end-users rather than short-term investors, making financial planning and loan affordability more important than ever.

Highlighting the impact of a status quo on the repo rate front, Vikas Garg, Joint Managing Director, Ganga Realty, said the RBI's move is expected to provide comfort to homebuyers and support demand across housing segments.

"Stable interest rates help buyers make decisions with confidence, particularly those relying on housing finance. Policy consistency also creates a supportive environment for long-term investment and keeps the residential market on a steady path," he said.

Also Read: GDP Growth Update: India's Q4 GDP Expands 7.8%, FY26 Growth At 7.7%; Details

Sharing a similar view, Ravi Kant, Co-founder, Elegance Enterprises & Elegance Infra, said predictability remains one of the most important factors for both buyers and developers.

"Interest rate certainty gives visibility to everyone involved in the housing ecosystem. It helps buyers plan better, supports investment confidence and allows developers to focus on execution without the uncertainty that comes with frequent policy changes," he said.

Home Loan EMI won't go down

For the housing sector, the latest RBI policy may not have changed borrowing costs, but it has reinforced confidence at a time when buyers are looking for clarity before making long-term financial commitments. Developers believe that as long as financing conditions remain predictable and infrastructure-led growth continues, housing demand is likely to remain on a firm footing in the months ahead.


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