RBI Holds Repo Rate at 5.25%, Providing Stability for India’s Real Estate Sector

Mumbai, June 2026: The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25%, reflecting a measured approach amid evolving domestic and global economic conditions.

Industry experts believe the move will provide stability and predictability to key sectors, including real estate, by ensuring steady borrowing costs and supporting investor and homebuyer confidence.

Commenting on the RBI's decision, Dharmendra Raichura, Vice President & Head of Finance, Ashar Group, said:

"RBI’s decision to maintain the repo rate at 5.25% reflects a calibrated approach amid evolving global and domestic economic conditions. For the real estate sector, policy stability provides greater visibility for both developers and homebuyers. Predictable borrowing costs support efficient project planning and timely execution, while buyers continue to benefit from stable lending rates and manageable EMIs. With housing demand demonstrating resilience and infrastructure-led growth creating new opportunities across key urban markets, the decision is expected to sustain market confidence and support steady momentum in the residential sector."

The decision is expected to provide continued support to residential real estate demand, particularly in urban markets where housing demand remains robust. Stable interest rates help developers plan projects more efficiently while offering homebuyers greater certainty regarding financing costs and long-term affordability.

Industry stakeholders believe that sustained policy stability, combined with ongoing infrastructure investments and economic growth, will continue to drive positive sentiment across India's housing and real estate market.