RBIs status quo on rate and low inflation will boost housing demand in festive season

The Reserve Bank of India's decision to keep the repo rate unchanged at 5.5 percent will keep interest rates stable and sustain the momentum in the housing market, which will gain further as the festival season approaches noted experts.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE noted, "For the real estate sector specifically, this signals stability and offers long-term predictability to developers and homebuyers.

The upcoming festive season and range-bound inflation are expected to boost the market momentum further." However, Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said the decision is a classic "wait-and-watch" move. "This move sends a message of stability and confidence in the economy's current trajectory, suggesting that it's resilient enough to handle external pressures without immediate intervention," he said. Stable rates, he added, would support organic growth without over-reliance on monetary easing.

According to ANAROCK data, only 96,285 homes were sold in Q2 2025, compared to 120,335 a year earlier. Puri noted that a rate cut would have helped boost the struggling affordable housing segment.