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RBI Holds Key Rates, Realty Sighs Relief

The Reserve Bank of India in its third bi-monthly monetary policy announced on Thursday, kept the repo rate unchanged at 6.5%. The three-day meeting of the Monetary Policy Committee (MPC) of the apex bank was held from August 8 to 10. Inflation for FY24 is estimated to be at 5.4%.

The central bank called for more transparency in floating rate loans. RBI Governor Shaktikanta Das said banks should be transparent for various loan related terms and conditions, such as foreclosures of loans, switching between fixed and floating, among others.

The real estate sector welcomed RBI’s stance of continuance of keeping a pause. Excerpts of realty reactions – 

Manoj Gaur, CMD, Gaurs Group and Chairman, CREDAI

In a back-to-back instance of moderation, the RBI’s pause in the repo rate hike resonates well with homebuyers and real estate developers. This development imparts the sector with a newfound certainty that the RBI won’t be tightening the rate anytime soon; future reductions could even be on the horizon if the economy keeps its stride. The current rate at 6.5% is still on the higher side and is a concern, at least for the affordable housing segment.

Mohit goel

Mohit Goel, MD, Omaxe Ltd

The RBI’s decision to keep the repo rate unchanged for two consecutive times reflects an improvement in the country’s economic fundamentals and confidence in India’s economic growth. This decision will positively impact residential and commercial segments. However, even after hitting the pause button, the current interest rate is already at its peak in the last four years. We are sure RBI is aware of it and will consider it in its next review meet.



Amit Modi, Director, County Group

The RBI’s commitment to supporting the real estate sector is evident in its decision to maintain the repo rates at 6.5%. This move shall enhance investment, safeguard against inflation, and ensure a stable housing market. By vigilantly tracking inflation and taking appropriate measures, RBI has paved the way for continuous growth in the real estate sector, fostering economic prosperity. This shall encourage buyers from every economic group to come and invest in the real estate sector

Ashwinder Raj Singh

Ashwinder R Singh, CEO, Residential, Bhartiya Urban

The unwavering commitment of the RBI to maintaining the repo rates at 6.5% underscores its resolute support for a stable housing market. This strategic decision not only enables buyers to invest in real estate with confidence, free from concerns about abrupt interest rate surges but also fosters an investor-friendly climate, promoting growth in both residential and commercial projects. Such a deliberate and confident choice reflects optimism in India’s economic trajectory, poised to generate positive impacts on the real estate sector.

Nayan Raheja, Raheja Developers

The announcement by RBI to keep the repo rate unchanged at 6.5% will boost the realty sector. This is the second consecutive time that RBI has taken this stance. Since May 2022, the central bank has raised the repo rate by 250 basis points (bps). As a result, the present move will encourage residential and commercial development in the country. This move is a nod to growth and could even point towards a reduction in the next meet.

Sanchit Bhutani, Managing Director, Group108

The real estate sector has received a boon as the RBI chooses to retain repo rates. Stability and continuity attract investors, assuring a profitable environment for long-term investments. Unchanged repo rates maintain consistent borrowing costs for homebuyers and developers, cultivating a favourable atmosphere for real estate investment. This decision will surely instil confidence among potential investors and enhance the sector’s growth as interest rates remain steady.

Sanjay sharma, Director, SKA Group

RBI’s decided to keep the repo rate unchanged at 6.5%, maintaining the status quo for the third time in a row. This persistent attitude reflects RBI’s confidence in the current economic trajectory and serves as a guiding light of assurance for potential homebuyers. This move will ensure that the real estate sector may grow without encountering any financial challenges by regularly observing inflationary developments and taking appropriate action.


Vikas Bhasin, CMD, Saya Group

We believe that the unaltered repo rate of 6.5% is a significant signal of changing outlook by RBI. Despite the challenges posed by high EMIs and interest rates, the decision shall bolster investor confidence and drive sector growth. The optimistic real estate scenario in the NCR is expected to fuel investments in upscale projects. Middle-income groups’ confidence in real estate investment shall also boost as interest rates remain stable.

Rajan Bandelkar, National President of NAREDCO

“The decision of the Reserve Bank of India’s Monetary Policy Committee to keep the repo rates unchanged is a significant development for the real estate sector. The stability in interest rates comes as a relief for developers who have been navigating a complex economic landscape. The unchanged rates provide a certain degree of predictability, which is essential for planning and executing long-term projects. This decision aligns well with our industry’s need for consistency and fosters an environment of cautious optimism. However, we hope that the central bank remains attuned to the evolving market dynamics and continues to support growth-oriented measures. The real estate developers’ body acknowledges the careful balancing act that the RBI is performing, considering various economic factors. As we move forward, we anticipate collaborative efforts between the industry and regulatory authorities to ensure a robust real estate sector that contributes to the nation’s economic resurgence.”

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE

We welcome RBI’s decision to keep the repo rate unchanged. The move is expected to bring cheer to the housing sector, given the high-interest rate cycle that has been prevalent since last year’s consecutive rate hikes. The pause in rate hike will strike the right equilibrium between growth, simultaneously containing inflation and managing external volatilities.

Dr Niranjan

Dr. Niranjan Hiranandani, National Vice Chairman, NAREDCO

RBI’s pause in rate hikes over the past few quarters will certainly drive up real estate growth. With stronger domestic consumption and NRI demand, the upcoming festive tailwinds are expected to create demand traction in the ownership and built-to-rent housing segments. In recent years, corporate balance sheets have improved due to ample liquidity, market consolidation, alternative funding avenues, and heavy debt servicing. Consequently, the market is experiencing a supply catch-up to meet the soaring demand for mid-priced and luxury housing, while the weakening demand for affordable housing represents a spoiler alert.

Radheecka Rakesh Garg, Director, Rajdarbar Realty

After six straight increases, the RBI’s decision to press the pause button straightaway for two consecutive times is a welcome move. From developers to homebuyers and financial institutions, every stakeholder in the real estate sector stands to gain as the decision fosters stability. This move will foster residential and commercial development in the country. However, as far as affordable housing is concerned, the repo at 6.5% is still on the higher side and is affecting the sector’s development in tier 2 & 3 cities.



Mohit Jain, Managing Director, Krisumi Corporation
Differing from the U.S.A and European Central Banks, the RBI chooses to keep the Repo rate unchanged. This strategy is preferred to manage inflation and ease pressure on homebuyers. The period following the pandemic experienced an upswing in home purchases due to pent-up demand, which has since tapered off. To ensure sustained growth, the real estate sector necessitates a stable and predictable interest environment.

Pradeep Aggarwal, Founder & Chairman, Signature Global
The RBI’s decision to keep the current interest rates unchanged is a promising step towards easing the financial burden on prospective homebuyers. The surge in monthly EMIs observed over the past few months has considerably constrained the budgets of individuals belonging to the middle and lower-income brackets who aspire to own a home. By maintaining a steady interest rate environment, there is a hopeful projection that these potential buyers will be encouraged to proceed with their home buying plans. This, in turn, is expected to inject a renewed sense of momentum into the affordable and mid-housing home segment, fostering a healthier real estate market and enabling more individuals to achieve their homeownership dreams.

Aditya Khushwaha

Aditya Khushwaha, CEO and Director, Axis Ecorp 

We welcome the RBI’s decision to keep the repo rate unchanged, which will be instrumental in uplifting homebuyer confidence in India’s property market. Interestingly, NRIs’ keen interest in real estate solidifies our anticipation of sustained growth. Despite lingering worries about inflation, the Indian economy persists in a robust state. Given current market trends we foreshadow a strong festive sales period in real estate, particularly in the second home and holiday home segment.

Amit Goenka, MD and CEO, Nisus Finance

RBI has adopted a wait and watch policy as the downgrade of US treasuries and 10 other banks sends ripples through the system and increases the risk in the global financial system. The growth of real estate and infra will continue along its positively slanted trajectory.

Ashish Narain Agarwal, Founder and CEO at

“The RBI’s commendable decision to maintain the repo rate at 6.5% for the third consecutive time has found favor across sectors. This move effectively balances inflation while nurturing economic growth. In the realm of real estate, this decision is a welcome one, particularly due to the steadfast momentum witnessed in the housing segment over the past year. The availability of attractively priced home loans will catalyze growth across luxury, mid-income, and affordable housing segments. As we approach the upcoming festive season, a pivotal period for the industry, the trajectory of growth remains promising. The supportive monetary policy framework provided by the RBI serves as an additional catalyst, poised to further bolster the real estate sector. This synergy between prudent fiscal measures and sectoral dynamism bodes well for the future outlook of the real estate landscape.”