The Reserve Bank of India’s decision to keep policy rates unchanged has been welcomed by participants in the commercial real estate sector, who say the move provides much-needed stability at a time of sustained leasing activity.
Manas Mehrotra, founder of coworking firm 315Work Avenue, said the status quo on interest rates offers clarity for developers, occupiers and investors, particularly in the office real estate segment. According to him, predictable borrowing costs help businesses plan long-term expansion and support continued demand for office space.
“With policy rates steady, commercial real estate benefits from stable financing conditions, which are critical for long-term investment decisions and new developments,” Mr Mehrotra said. He added that consistent interest rates help maintain leasing momentum, especially as companies reassess their workspace strategies amid evolving hybrid work models.
The RBI’s stance is also expected to support credit availability, which plays a key role in attracting both domestic and institutional capital into commercial real estate. Easier access to finance, industry executives say, can encourage developers to move ahead with new projects while giving investors greater confidence in the sector’s medium-term outlook.
However, market participants are increasingly focused on the possibility of a rate cut later this year. Mr Mehrotra noted that a reduction in policy rates could have a more pronounced impact on the broader real estate market by lowering borrowing costs further and improving liquidity conditions.
“A rate cut, when it comes, is likely to ease financing pressures and significantly boost consumer demand,” he said, adding that lower interest rates could accelerate decision-making among occupiers and investors alike.
India’s office market has shown resilience over the past year, driven by demand from technology firms, global capability centres and flexible workspace operators. Industry experts believe that a stable monetary policy environment, combined with any future easing, could further strengthen the sector’s growth trajectory.
For now, the RBI’s decision to hold rates steady is being viewed as a supportive signal for commercial real estate, reinforcing confidence in ongoing expansion plans.
