As the Reserve Bank of India prepares to announce its Monetary Policy Committee (MPC) decision, all eyes in the real estate sector are on the central bank’s stance. With the current repo rate at 5.50% and inflation under control, developers and homebuyers are hoping for either a marginal cut or a continued pause that would reinforce affordability, boost buyer sentiment, and set the stage for a strong festive season.

Industry leaders believe that the rate cuts implemented earlier this year have already helped ease financial pressure on developers and encouraged fence-sitting buyers to act. A continuation of this supportive approach—especially in the form of a 25-basis-point reduction—could further accelerate decision-making in both residential and commercial real estate segments. Many also highlight that such a move would benefit first-time buyers, mid-income families, and those in emerging Tier 2 and Tier 3 cities, where affordability remains a key driver.

Dr Gautam Kanodia, Founder, KREEVA and Kanodia Group, says, "The RBI’s approach in recent months reflects a commendable balance of foresight and stability, something that has directly benefited the real estate sector. With three rate cuts already since February, another repo rate reduction in August could further accelerate both sales and bookings. Lower borrowing costs enhance buyer confidence and improve liquidity across the value chain. At a time when economic activity remains uneven, real estate has emerged as a steady investment avenue. A potential rate cut now could not only boost market sentiment but also act as a timely catalyst for broader economic revival."

Amit Modi, Director, County Group, said, " As much as we may wish for it, we expect the RBI to maintain the status quo on the repo rate. The Trump Tariff has come as a spoiler. Despite all this, the Indian economy is on a sound footing, the growth outlook looks promising, and the real estate sector, which entered a consolidation phase this year, is on firm ground. With the banking system liquidity rising to a net surplus of Rs. 3.74 trillion, a three-year high, these are actually good times, and we can hope for a reduction just before the onset of the festive season.

Umang Jindal, CEO, Homeland Group, says, "The previous repo rate cut served as a much-needed catalyst for the real estate sector. For developers, it was a significant move, easing their financial strains. Ahead of the upcoming monetary policy, another rate cut, or even a steady stance, would ease the cost of borrowing, which can help increase demand in both residential and commercial markets. Such a move would strengthen buyer interest in the sector and encourage developers to launch more projects".

Rajjath Goel, Managing Director, MRG Group, says, "In Gurugram’s luxury housing market, sentiment plays a big role. The 50 bps cut in repo rate earlier this year was a confidence booster, particularly for premium launches. Another rate cut in August- or even a stability- would add further momentum, especially ahead of the festive season. This will give a reassurance that macroeconomic cues are aligned with long-term investment decisions."

Vikas Dua, Founder & Director, Chintamanis, says, “RBI bringing the repo rate to 5.5% in June was already in sync with the expectations of the real estate sector. But the real focus now is on continuity. We have high hopes that the government will sustain this momentum with supportive policies in the upcoming monetary policy announcement. While interest rates are just one factor, a further reduction would boost the confidence of buyers and will further induce their investment & consumption decision.”

Sanchit Bhutani, Managing Director, Group 108, says, "The June rate cut came at a crucial juncture for the Noida-Greater Noida’s commercial real estate market. With rising demand for Grade A office and retail spaces, softer borrowing costs helped developers and occupiers plan better. Besides, the region is already witnessing growing interest from domestic enterprises and global occupiers eyeing expansion. If the August policy brings another rate reduction, it will further reduce entry barriers for businesses and investors, fuelling more transactions and project launches."

Saurabh Saharan, Group Managing Director, HCBS Developments, says,  "Ahead of the upcoming MPC meeting, a further cut in the repo rate would be a welcome move for the entire housing ecosystem in NCR. The reduction earlier this year already helped improve buyer sentiment, especially in the mid-income and emerging premium categories. Lower EMIs not only enhance affordability but also bring back momentum in segments where decisions were being deferred. A slight rate cut, or even maintaining it, could align perfectly with the festive buying cycle, giving both end-users and developers the confidence to act decisively. This will also provide relief to builders by reducing borrowing costs and enabling them to launch new projects and clear inventory faster."

Kushagr Ansal, Director, Ansal Housing, says, "With the RBI's monetary policy review approaching, the industry is optimistic that the central bank will continue its supportive stance. A further cut in the repo rate, or even holding it steady, will have a positive impact on homebuyer sentiment, particularly among first-time buyers. Stable or lower borrowing costs enhance affordability and can accelerate decision-making."

Prakash Mehta, Chairman and Managing Director of Ocus Group, said, "The stability in the repo rate will help maintain consistency in lending interest rates, which is a positive sign for the overall real estate sector. It will support market sentiment during the upcoming festive season, a period that typically sees increased investment activity. The impact of recent rate cuts is already visible, and if the RBI continues to keep rates steady, it will allow developers to maintain price stability across projects, thereby boosting buyer and investor confidence. With rates currently at 5.50%, stakeholders will find it easier to plan long-term financial strategies, supporting sustained demand across commercial, retail, and premium segments".

Also Read: RBI Monetary Policy: MPC Expected to Pause Rate Cuts Amid Global Uncertainties

Sakshee Katiyal, Chairperson, Home and Soul, says that customer sentiment is already positive during the festive season. If interest rates are further reduced, it will give a dual boost to the real estate sector – increasing both sales and investment.

Manit Sethi, Director of Excentia Infra, says that if there is a further repo rate cut in August, it will be a significant opportunity for both the secondary and premium segments. A reduction in interest rates will ease the burden of EMIs, making it easier for new buyers to make purchase decisions.

Rakesh Kaushik, Director, VHD Group, says, "As we approach the upcoming MPC review, homebuyers and developers are closely watching the policy stance. A stable or a marginal rate cut could significantly uplift buyer sentiment, especially in emerging tier 2 and 3 markets, where affordability and long-term value drive decisions. The earlier rate cut already helped fence-sitters take the plunge, and any further support from the RBI will strengthen confidence among first-time buyers. We believe this is an opportune time for aspiring homeowners to act, with both market fundamentals and policy cues working in their favour."

Sunny Katyal, Co-Founder, Investors Clinic, says, "Buyers are sensitive to interest rate movements. But the previous 50-bps repo rate cut nudged many prospective buyers and investors back into active search mode across residential and commercial segments. With the upcoming monetary policy on the horizon, we expect that the RBI will maintain the current stability, which would be advantageous for the sector. This steadiness will impact the entire sector, bringing more beneficial opportunities for buyers and developers in both segments."

Ashwani Kumar, Pyramid Infratech, says,  "In Gurugram, the real estate market is finely attuned to policy cues, and the June repo cut was right in line. It brought renewed traction across both mid-income and luxury segments, as buyers became more optimistic about long-term EMIs. We anticipate that the RBI will maintain the repo rate in August which could deepen that sentiment and energize the demand across the city’s key micro-markets."

Vishal Sabharwal, Head Sales, Orris Group, says, "As the RBI’s MPC meeting approaches, we expect the central bank to maintain a steady and supportive stance. Even a status quo on the repo rate can be encouraging for homebuyers, keeping EMIs stable and sentiment positive. Consistent policy signals have played a key role in building buyer confidence, and a favourable move now could give a timely boost to demand ahead of the festive season."

Industry sentiment reflects confidence in the economy's resilience and a belief that policy stability will encourage new launches, improve liquidity, and empower homebuyers to take timely decisions. Whether it’s stability or a symbolic rate cut, developers agree: now is the time to fuel momentum, not stall it.