6 stories from 3 sources

Stable rates protect housing momentum as premium markets tighten

Day’s Recap

Supporting Articles

CREDAI and NAREDCO welcomed the RBI's decision to keep the repo rate unchanged, saying stable home loan rates should support housing demand and reassure buyers. They also pointed to the RBI's revised GDP outlook and modest inflation adjustment as factors shaping market expectations.

8:34 AMEconomic Times

DLF is targeting a sales pipeline of Rs 1 lakh crore over the next four to five years, led by luxury housing. It will not pursue a REIT for now and expects residential sales to nearly double profitability from 2028 onward.

11:36 AMEconomic Times

Rents in Delhi's Lutyens Bungalow Zone have surged as a severe shortage of homes for sale pushes affluent families, diplomats and corporate executives into the leasing market. Monthly rents in areas including Golf Links and Sunder Nagar have reached ₹20 lakh, with some pockets seeing rents double in recent years.

12:02 AMEconomic Times Realty

8:34 AMEconomic Times

CREDAI, NAREDCO hail RBI policy, stable home loan interest rate to help sustain housing demand

Summary

Stable borrowing costs remove a near-term obstacle for homebuyers and give developers more certainty in

Why it matters

Rate stability supports housing demand by preserving loan affordability and improving developer confidence.

Link to Story

6:06 AMThe Property Times

RBI Holds Repo Rate at 5.25%; Realty Industry Sees Stability as Growth Driver The Reserve Bank of India’s (RBI) decision to maintain the repo rate at 5.25% and retain its ‘neutral’ monetary policy stance in the third bi-monthly Monetary Policy Committee (MPC) meeting of FY27 has elicited a measured response from the real estate industry. While the sector had hoped for a rate cut to further enhance home loan affordability and stimulate housing demand, industry leaders believe the RBI’s decision reflects a balanced approach amid elevated global uncertainties, volatile energy prices, and inflationary concerns. They noted that stable interest rates will continue to support buyer confidence, provide financial predictability for developers, and sustain the momentum witnessed in the residential real estate market. Mr. Kamlesh Thakur, President, NAREDCO Maharashtra “The RBI’s decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a prudent approach amid global uncertainties and evolving inflation dynamics. While the industry was hopeful of a rate cut, policy stability itself provides confidence to both developers and homebuyers. With borrowing costs remaining unchanged, housing demand is expected to continue its momentum, particularly in the mid-income and premium segments. The upward revision of India’s GDP growth projection to 6.7% underscores the resilience of the domestic economy. Going forward, as inflation moderates in line with the RBI’s expectations, there could be room for a more accommodative monetary policy. A future rate cut would further improve housing affordability, strengthen buyer sentiment, and accelerate investments across the residential and commercial real estate sectors.” Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory “The RBI’s decision to keep the repo rate unchanged brings continuity and predictability to the market at a time when global geopolitical developments and inflationary pressures continue to create uncertainty. Stable interest rates ensure that home loan EMIs remain broadly unchanged, allowing prospective buyers to make informed purchasing decisions without concerns over rising borrowing costs. The Indian housing market has demonstrated remarkable resilience over the past few years, supported by strong end-user demand, rising incomes, and growing confidence in the economy. With GDP growth projected at 6.7%, we expect housing demand to remain healthy across key micro-markets.” Mr. Shilpin Tater, Managing Director, Superb Realty “The RBI’s decision to maintain the repo rate is a balanced move considering the current global economic environment and domestic inflation outlook. Policy stability is particularly important for the real estate sector as it enables developers to plan projects with greater financial certainty while allowing buyers to benefit from stable lending rates. Demand for quality residential & commercial developments, especially in well-connected urban locations, is expected to remain robust. We remain optimistic that supportive monetary measures in the future could further strengthen investment activity.” Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers “The RBI has adopted a measured and responsible approach by maintaining the repo rate while closely monitoring inflationary trends and global developments. Although a rate cut would have enhanced affordability for homebuyers, the decision to maintain stability provides confidence to both consumers and developers in an uncertain macroeconomic environment. The premium and luxury housing segments continue to witness healthy demand driven by aspirational buyers and strong wealth creation, while the broader residential market remains supported by genuine end-user demand. Stable financing costs, coupled with India’s improving growth outlook, should sustain market momentum.” Mr. Dhruman Shah, Promoter, Ariha Group “The RBI’s decision to keep the repo rate unchanged reflects its focus on balancing growth with inflation management amidst ongoing global uncertainties. For the real estate sector, policy continuity is a positive outcome as it preserves financial stability and ensures that financing conditions remain predictable for both developers and homebuyers. Stable interest rates, combined with sustained infrastructure investments and urbanization, will continue to support residential sales.”

Summary

The RBI kept the repo rate at 5.25% and retained its neutral policy stance at its third MPC meeting of FY27. Real estate leaders said unchanged borrowing costs should preserve buyer confidence and support residential and commercial demand, despite the sector’s preference for a rate cut.

The immediate shift is policy continuity, not cheaper credit, so home loan affordability will not

Why it matters

Stable rates protect current housing demand but leave a major affordability boost dependent on future monetary easing.

Link to Story

4:01 AMEconomic Times

RBI's status quo on rates to support housing demand, keep real estate sentiment intact: Industry

Summary

The RBI kept the repo rate at 5.25% for the fourth consecutive review, drawing a positive response from real estate developers and consultants. They expect stable borrowing costs to support housing demand and project planning, although rising construction costs continue to pressure affordability, particularly for mid-income buyers.

The unchanged policy rate removes a near-term obstacle for homebuyers and gives developers greater visibility

Why it matters

Stable rates support housing demand, but construction costs could prevent the benefit from reaching affordability-sensitive buyers.

Link to Story

3 stories · 2 sources

Other Developments

A curated list of other prominent stories from this day.

Madhuri Dixit sold a commercial office in Andheri West and a residential apartment in Juhu for a combined ₹9.25 crore. The Andheri property gained more than ninefold in value since 2008, while the Juhu apartment more than doubled since its purchase in 2012.

10:54 AMEconomic Times Realty

Make it yours

Build Your First Pass.

Pick your topics, set your cadence, and receive your personalized First Pass in your inbox. It’s that simple!

Stable rates protect housing momentum as premium markets tighten

Day’s Recap

CREDAI, NAREDCO hail RBI policy, stable home loan interest rate to help sustain housing demand

RBI's status quo on rates to support housing demand, keep real estate sentiment intact: Industry

DLF eyes Rs 1 lakh cr sales pipeline in 4-5 yrs, rules out REIT for now

Lutyens Delhi's rents are touching ₹20 lakh per month & there're no homes for sale

Other Developments

Madhuri Dixit sells two properties in Mumbai’s Andheri, Juhu for ₹9.2 crore

Build Your First Pass.