The Reserve Bank of India (RBI) maintained the repo rate at 5.5%, opting for a wait-and-watch approach. Real estate leaders welcomed the decision, citing it as supportive of the sector’s momentum.
The Reserve Bank of India (RBI) on Wednesday (August 6) decided to keep the key repo rate unchanged at 5.5%, choosing to adopt a wait-and-watch approach amid growing optimism about India’s economic trajectory. Announcing the outcome of the Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said, “The MPC has decided to keep the policy repo rate unchanged at 5.5%. The stance of the policy remains neutral.”
The RBI’s decision was met with a positive response from key figures in the real estate sector, who viewed the move as one that encourages sustained momentum and investor confidence.
‘A Prudent and Reassuring Step’: M5 Mahendra Group
Mahendra Nagaraj, Vice President of M5 Mahendra Group, praised the RBI’s continuity in policy. “The RBI’s decision to maintain the repo rate at 5.5% is a prudent and reassuring step that continues to fuel momentum in India’s housing sector,” he said.
He added that low home loan rates are sustaining strong buyer sentiment across both affordable and premium housing segments. “The policy direction is enabling developers to plan better and deliver with more efficiency,” Nagaraj noted, adding that while a marginal rate cut would’ve helped in price-sensitive markets, the overall stance reinforces long-term sectoral stability.
‘Luxury Market Unaffected by Rates’: Bennet & Bernard
Lincoln Bennet Rodrigues, Chairman and Founder of Bennet & Bernard, said the steady rates were expected and won’t impact luxury real estate buyers much. “In luxury real estate, interest rates are not the main driver. Buyers are investing for long-term value, heritage, and quality of life,” he explained.
In markets like Goa, where the group operates, high-net-worth individuals (HNIs), NRIs, and seasoned investors are more interested in exclusivity and stability than just rate cuts, Rodrigues said. “The RBI’s decision reinforces that sense of stability.”
‘Momentum to Continue’: Sterling Developers
Ramani Sastri, Chairman and MD of Sterling Developers, also supported the move, saying that the sector has already adapted to the current rate environment and continues to perform strongly.
“We’ve seen strong consumer demand driven by lower interest rates, especially in the mid, premium, and luxury segments,” Sastri said. “Although a rate cut could have added festive season cheer, the status quo will keep current sales momentum intact.”
He added that the decision gives homebuyers confidence in steady loan terms and offers developers clarity to plan ahead. “With sustained demand and continued policy support, the real estate sector is well-positioned to remain a key pillar of India’s economic growth.”