Industry Welcomes RBI’s Repo Rate Pause, Sees Stability for Real Estate and Infrastructure
According to ANAROCK Group Chairman Anuj Puri, the rate pause will help sustain momentum in the residential real estate market by keeping borrowing costs stable despite rising construction expenses and global economic uncertainties. ANAROCK Research reported that housing sales reached approximately 1,01,675 units in Q1 2026, up 9% year-on-year, although sales declined 7% sequentially from Q4 2025.
The report also noted that new housing supply rose 26% year-on-year to over 1.26 lakh units during the quarter, pushing unsold inventory above 6.01 lakh units. Stable financing conditions are expected to support inventory absorption and maintain housing demand.
Rajan Luthra, CFO of Action Construction Equipment Limited, said policy stability provides greater visibility for investments, capacity expansion and infrastructure development, while supporting demand across construction and equipment sectors.
Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt. Ltd., noted that home loan rates are likely to remain stable at around 7%–7.25%, benefiting both existing borrowers and prospective homebuyers by maintaining affordability.
Vimal Nadar, Head of Research at Colliers India, cautioned that rising crude oil prices and supply-chain disruptions could increase construction costs and potentially impact housing affordability, particularly in the affordable and mid-income segments.
Industry experts from Reloy and Vestian also viewed the decision as supportive for the housing market, although they warned that persistent inflationary pressures may lead to future rate hikes if global uncertainties continue.
Overall, the RBI’s decision is being seen as a stabilising factor for real estate, infrastructure and construction sectors, helping maintain buyer confidence, support project execution and sustain economic growth momentum.
Published on:
05 June 2026
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