RBI maintains repo rate, real estate sector welcomes stability
The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5% in its latest monetary policy meeting, a move welcomed by the real estate sector. This is the fourth consecutive time the central bank has kept the rate unchanged, providing stability to the housing market.
The RBI's decision to maintain status quo on policy rates is a significant positive for the real estate sector, said Shishir Baijal, Chairman and Managing Director, Knight Frank India. The continuity in rates has helped maintain home loan interest rates at decadal lows, which has been instrumental in sustaining the growth momentum in residential sales.
Industry experts believe this stability will continue to drive housing demand, particularly in the mid and affordable segments. The unchanged repo rate is expected to keep home loan rates competitive, encouraging fence-sitters to make purchase decisions.
Data from PropEquity shows that housing sales in India's top 8 cities increased by 17% year-on-year in the first quarter of 2025, with steady home loan rates being a key contributor to this growth.