RBI has a repo rate at 5.5%: steady loan costs to keep speed in the real estate sector

New Delhi, August 8, 2025: In a generally expected step, the Reserve Bank of India (RBI) has maintained the Repo rate at 5.5% during its August Monetary Policy Review, a decision that was welcomed by the real estate sector. With the relaxation of inflation and economic uncertainty arising from American trading rates, the neutral attitude of RBI offers the much needed stability for both home buyers and developers. Industry experts say that unaltered loan costs will continue to support the demand for housing loans, so that the sustainable momentum is guaranteed in both affordable and premium living segments.

Mr. Prashant Sharma, President, Naredco Maharashtra
“The decision of the RBI to maintain the Repo rate at 5.5%, despite the illumination of inflation, reflects a cautious but balanced approach to managing global headwind and domestic stability. For the real estate sector, a status quo for the momentum inactor of the Opviekieinger inactor. To further support growth, especially in the affordable and middle incomes.

Mr. Kaushal Agarwal, chairman of the Guardians Real Estate Advisory
“The real estate sector has shown resilience despite the global uncertainties. With inflation under control and GDP growth steadily projected, a repo -rate reduction would have been the perfect catalyst to activate the demand of the festive season. However, the decision of the RBI can remain for the comfortable position.

Mr. Vikas Jain, CEO, Labdhi Lifestyle and President, Naredco Maharashtra NextGen
“While the RBI’s decision to maintain the Repo rate, ensures financial stability, the sector was optimistic about a rate reduction in view of the decrease in inflation to 2.1%. Affordable homes and first home buyers remain an extremely interest-rate sensitive. A reduction would have forced the house question considerably.

Mrs. Shraddha Kedia-Agarwal, director, Transcon developers
“With the inflation-rings and the interest of the Thuisbuyer still high, the real estate sector was hopeful for a tariff reduction to further catalyze the demand for housing. The decision of RBI to maintain the status quo, however, reflects a vigilant approach to the long term for the tribility of the stabelieven. Interest rate, but a softer interest rate, but a softer interest rate for deep book rates for deep book rates for the real market for deeply interest rates, but a realistic income for deep boost.

Mr. Dhatour Shah, Promot, Ariha Group
“In a scenario where worldwide trading dynamics are shifting and inflation has been visibly moderated, the real estate sector expected any policy support via tariff shift. Nevertheless, the decision of the RBI suggests to maintain the current tariff that is prioritized without suddenly the financial costs A pro-growth signal in the following assessment, in particular to give a push to the affordable housing segment. “

Mr. Nihar Jayesh Thakkar, founder, The Mandate House PVT. Ltd.
“The decision of the MPC to keep the repo rate unchanged is a balanced, taking into account the wider economic landscape. For stakeholders in real estate, especially in the advisory and sales ecosystem- this offers continuity in copper behavior and affordability of the home credit would help to help to help to help to help to help to help to help to help to help to help to help to help to help to help to to help to help to help to help to help to help to help to help to help to help to help to help to help to be unrepend. Aspiration buyers, especially in the mid and premium segment. “