The Reserve Bank of India’s decision to keep interest rates unchanged is likely to sustain the current momentum in India’s residential real estate market, according to industry leaders, who say stable borrowing costs are reinforcing buyer confidence.
Ramani Sastri, Chairman and Managing Director of Sterling Developers, said the status quo on policy rates would help maintain sales growth by providing homebuyers with clarity and predictability around home loan repayments.
“The Indian residential real estate sector has shown remarkable resilience,” Mr Sastri said, pointing to strong demand, rising consumer aspirations and government-backed policy support as key drivers. He added that these factors have positioned India as one of the fastest-growing property markets globally.
Industry data over recent quarters has shown steady improvement in housing sales, particularly in urban centres, as buyers look beyond short-term price movements and focus on long-term asset creation. According to Mr Sastri, this trend is being reinforced by broader economic growth, which is encouraging households to invest in residential property as a long-term store of value.
“As India’s economy continues to expand, homebuyers are increasingly viewing residential real estate as a stable investment offering long-term returns,” he said. “This confidence is critical for sustaining demand and accelerating home ownership across income segments.”
While welcoming the RBI’s decision to hold rates, Mr Sastri said further reductions in borrowing costs would provide an additional boost to affordability. Lower interest rates, he noted, could help unlock fresh demand, particularly among first-time buyers, while also encouraging greater investment activity in the housing sector.
A supportive interest-rate environment, he added, plays a crucial role in underpinning buyer sentiment and ensuring continued growth for the sector. “Any further easing of rates in the near term would be a positive step, as it would improve affordability and support long-term growth for the real estate industry,” he said.
The RBI has reiterated its focus on balancing inflation control with economic growth, a stance that developers say is helping maintain stability across interest-sensitive sectors such as housing.
