The Reserve Bank of India’s decision to keep interest rates unchanged is expected to provide greater certainty to India’s real estate sector, with industry executives saying stable borrowing costs could support housing demand, project execution and commercial property investment.
Ramani Sastri, Chairman and Managing Director of Sterling Developers, said the RBI’s supportive stance was positive at a time when businesses remained cautious about expansion. He said stable interest rates would give developers greater predictability over funding costs while allowing homebuyers to make long-term financial decisions with greater confidence.
Ashish Acharya, Founder and CEO of Propsoch, said continuity in rates would help contain the impact of rising construction costs and reduce pressure on developers to increase property prices. He added that predictable home-loan EMIs could encourage buyers, particularly first-time purchasers, to make more considered investment decisions.
The stable rate environment could also support demand for commercial real estate. Manas Mehrotra, Founder of 315Work Avenue, said continued liquidity and predictable borrowing costs were important for startups, small businesses and larger companies, which are key users of flexible workspace.
He expects demand for managed offices to benefit from growing requirements from global capability centres (GCCs) and corporates seeking flexible and scalable office solutions.
Harsh Jagwani, Managing Director of Notandas Realty, said stable rates would benefit both developers and homebuyers. He noted that residential demand, particularly in the premium and luxury segments, had remained strong, while rate stability could provide developers with greater certainty when planning new projects and investments.
He also expects commercial real estate activity to improve as geopolitical conditions and supply chains stabilise, with GCC expansion and domestic occupier demand supporting leasing activity.
Overall, industry executives said the RBI’s decision provides a stable backdrop for the property market. With urbanisation, infrastructure development and rising demand for housing and office space continuing to support the sector, predictable financing conditions could help sustain real estate activity in the coming quarters.
