Reaction to RBI Monetary Policy | Colliers | Square Yards | Urban Money | India Sotheby's International Realty

(MENAFN- sloughpr) 1. Mr Piyush Bothra, Co-Founder & CFO, Square Yards

The decision to keep the repo rate unchanged at 5.5% came as no surprise, given the crosscurrents in the economy. On the domestic front, the growth outlook remains firm with the international agencies such as the IMF revising forecasts upward, inflation largely contained, and GST 2.0 reforms adding further impetus. The 100 basis points of easing delivered earlier in the year are still working their way through the system. At the same time, global risks persist with US tariffs, tighter immigration policies, and a weaker rupee creating pressure. In housing, lower home loan rates alongside the festive season are driving a visible pickup in demand. While another cut would have added momentum, the case for further easing toward year-end remains strong.
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2. Mr Vimal Nadar, National Director and Head of Research, Colliers India

With the RBI maintaining the repo rate at 5.5% for the second consecutive time, monetary policy continues to support stability amidst external trade frictions and fast changing global economic narrative. This pause, along with the Central bank’s ‘neutral’ stance, reflects cautious optimism which factors in the resilient domestic economy and moderating inflation levels. The Central Bank has consequently revised the GDP growth projection upwards by 30 basis points to 6.8% for FY 2025-26.

Banks are yet to fully transmit the earlier 100 basis points repo rate reduction and is expected to be completed soon in the ongoing festive season. This is expected to benefit the real estate sector, especially homebuyers in the affordable and mid-income segments. Additionally, the recent GST rationalization in key construction materials such as cement can allow room for developers to lower prices and offer lucrative deals to push housing sales. Overall, timely GST rationalization, stable financing costs and festive discounts augur well for real estate, especially housing, warehousing, retail and hospitality demand.
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3. Amit Prakash, Co-founder & CBO, Urban Money

Keeping the repo rate unchanged at 5.5% reflects a wait-and-watch approach. Domestic indicators are holding up well with steady growth, moderate inflation, and the gains of earlier easing still unfolding. At the same time, global uncertainty and currency weakness argue against pushing policy too far. For borrowers, the environment is already improving with banks gradually reducing lending rates, helping sustain household consumption and credit demand. The pause allows space for the impact of past actions to play out, while leaving scope for the central bank to step in with fresh easing if needed in ensuing months.
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4. Mr Amit Goyal, Managing Director, India Sotheby’s International Realty

The RBI’s decision to hold the repo rate at 5.50% offers stability at a time when both homebuyers and investors are seeking clarity. For end-users, steady borrowing costs help sustain affordability and confidence, particularly as demand for larger, lifestyle-driven homes continues to grow. For investors, predictability in monetary policy reinforces India’s appeal as a resilient, high-growth real estate market, especially in the luxury segment, where global capital is showing rising interest. This pause is about signaling long-term confidence — an opportunity for the industry to consolidate demand, innovate, and deliver with greater consistency.

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