CT Logo

The RBI’s decision to hold the repo rate at 5.25% reflects a calibrated pause amid rising global uncertainty, particularly the West Asia crisis and its inflationary spillovers through energy prices. For Indian real estate, this stability is significant. After cumulative rate cuts in 2025, residential demand, especially in mid and premium segments, has already absorbed higher price levels, with key markets seeing 8-12% YoY appreciation. A pause now sustains buyer sentiment without triggering fresh affordability shocks.

However, elevated input and financing costs will continue to pressure developer margins, even as bank credit growth remains strong. On the capital side, 20% growth in FDI signals continued investor confidence. Yet, prolonged geopolitical volatility could delay institutional inflows and impact construction timelines, particularly in cost-sensitive segments.