With the RBI’s upcoming policy review drawing attention across the real estate sector, industry leaders are assessing how interest rates could influence homebuyer sentiment, affordability and demand. As the festive season approaches, developers remain focused on market momentum, infrastructure-led growth and evolving buyer preferences across residential, premium housing and plotted development segments.
Vikas Garg, Joint Managing Director, Ganga Realty said, “The upcoming RBI policy review comes at an important time for the residential real estate sector, with the festive season also set to bring renewed activity among homebuyers. While borrowers will closely watch the movement of interest rates and its impact on home loan affordability, the underlying demand for quality housing remains healthy. Festive periods traditionally see greater buyer engagement, and this year, we expect the combination of improving consumer confidence, stable economic fundamentals and attractive offerings from developers to support housing demand. In markets such as Gurugram and the wider NCR, the aspiration for homeownership continues to remain strong, supported by infrastructure development, connectivity and employment opportunities. Irrespective of short-term rate movements, buyers are increasingly evaluating homes from a longer-term perspective. We remain positive about the housing market and expect the festive season to further strengthen momentum and encourage more end-users to take their home-buying decisions forward.”
HS Kandhari, Co-founder & Executive Director – Harmony Infra said, “The RBI’s upcoming policy will be closely watched by the real estate sector, as interest rates have a direct impact on home loan affordability and buyer sentiment. A stable interest-rate environment gives buyers greater confidence to plan their purchases, while any reduction in rates could provide an additional push to housing demand. At the same time, the market today is being supported by factors such as improving connectivity, infrastructure development and a growing preference for better-quality homes. This is especially relevant in the premium and second-home segments, where buyers are also looking at location, lifestyle and the long-term value of their investment.”
Raghunath Reddy Bhattagiri, Founder Triguna Projects said, “”With the industry expecting a small hike in the repo rate, even a 25 bps rise may lift the cost of borrowing for some home buyers. Affordability will matter more now. But the market has held up through earlier hikes, helped by strong end-user demand and better connectivity around Bangalore. Buyers are choosing land they will actually use, not just hold. At Triguna, families come to us for open space and a community they can grow with. That need is much bigger than a small change in rates, and it is not going away.”
Amit Porwal, Director Aranyakaa Farms said, “The industry is expecting a small hike in the repo rate, which may raise home loan EMIs a little. For farmland, the effect is limited, because many buyers pay from their own savings and see land as a long-term asset. What they look for is clear titles, managed farms and good upkeep of the land. Developers who deliver on these will not feel much pressure from a rate change. At Aranyakaa, we believe demand for managed farmland will stay strong, as people now want assets that are safe and easy to hold.”
Ravi Prakash Pandey, Founder and Chairman, Amrawati Group said, “A stable interest rate regime is vital for maintaining the impetus of the Indian real estate industry. Any easing of the interest rates, on a measured scale, would be beneficial for buying homes and investing in addition to making developers continue with their expansion programs. Nevertheless, macroeconomic stability is also imperative for sustainable growth.”