The latest RBI Monetary Policy (April 2026) reflects a stance of “cautious optimism” under Governor Sanjay Malhotra. 1 The central bank maintained the repo rate at 5.25% with a neutral stance, prioritizing stability amid global supply chain disruptions caused by West Asia conflicts. 1
The decision to keep the repo rate unchanged, largely in line with expectations, definitely reinforces a supportive environment for the real estate sector in a volatile global environment. Real estate investments remain the most desired due to their strong base and reliability factor. Homebuyers are currently driven by long-term confidence rather than short-term rate fluctuations. However, we are hopeful of a rate cut in the near future as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy. Moreover, the government’s continued push on infrastructure growth strengthen the long-term outlook for the sector. Overall, a stable interest-rate environment will play a crucial role in sustaining homebuyer confidence throughout the year. The real estate sector has shown resilience with strong sales, and supportive monetary policy and measured approach will only accelerate its upward trajectory. The unchanged policy stance is set to keep the real estate sector’s growth momentum on track.
Ramani Sastri – Chairman & MD, Sterling Developers
The RBI’s decision to hold rates, reflects a cautious yet balanced approach to managing global headwinds and ensuring domestic stability. For commercial real estate, steady interest rates provides much-needed stability in borrowing costs, supports sustained leasing momentum and long-term investment decisions, thereby increasing demand for office space and new developments. With no immediate upward pressure on financing costs, occupiers are more likely to expand through managed and flexible workspaces, reinforcing the sector’s strong demand trajectory. This is particularly important at a time when leasing activity is gaining traction across key markets. Easier credit availability attracts both individual and institutional investors, driving real estate growth. Overall, a stable interest rate environment offers much-needed predictability, supporting informed decision-making across all segments of real estate. The RBI in the previous MPC announcement has been supportive of Real Estate Investment Trusts (REITs) allowing them to borrow directly from banks, although with specific safeguards. However, going forward, a further rate cut would enable businesses to access cheaper credit and undertake timely capacity expansion. Overall, the status quo reinforces continued growth in commercial real estate, coupled with infrastructure-led development.
Manas Mehrotra, Founder, 315Work Avenue, a leading coworking player
The decision of the RBI to keep the repo rate unchanged at 5.25% reflects a calibrated approach to reinforce stability in the current times of global and domestic uncertainties. For the real estate sector, the stable repo rates will enhance the confidence of buyers and developers alike. The decision will aid the developers in planning and executing projects with greater certainty. For buyers, the stability in repo rates will translate to greater conviction in buying decisions. In the long term, the current decision will facilitate the demand momentum and the overall robustness of the real estate sector.
Yateesh Wahaal, Director Finance, M3M India
