Affordable home loan will help in sustaining the residential demand and support project level liquidity for developers
FinTech BizNews Service
Mumbai, 5 August, 2026: The Monetary Policy Committee (MPC) held its 62nd meeting from August 3 to 5, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent. Consequently, the standing deposit facility (SDF) rate remains at 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50 per cent. The MPC also decided to continue with the neutral stance.
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Here are the views of the Real Estate stakeholders on the RBI MPC’s decisions, announced earlier today:
Sharad Mittal, Founder & CEO, Arnya Real Estate Fund Advisors:
"The RBI's measures are a positive step towards ensuring that liquidity reaches the real economy without compromising financial discipline. A stable interest-rate environment, coupled with continued liquidity support, creates a conducive backdrop for credit expansion. For the residential real estate sector, easier availability of construction finance is as important as home loan affordability. As capital becomes more accessible, developers with strong balance sheets, sound governance and proven execution should be better positioned to accelerate project delivery, supporting both housing supply and broader economic growth. Affordable home loan will help in sustaining the residential demand and support project level liquidity for developers. We believe these measures will improve credit confidence across the ecosystem and sustain momentum in India's housing market."
Anshuman Magazine, Chairman & CEO – India, SE Asia, Middle East & Africa, CBRE
"Predictable borrowing costs provide homebuyers the confidence to move ahead with long-deferred purchase decisions, while developers benefit from a stable financing environment that enables them to plan launches and investments with greater certainty. In that context, the RBI's decision to hold the repo rate at 5.25% for a fourth straight time reflects a calibrated approach at a time when rising crude prices, food inflation and continued geopolitical uncertainty continue to demand prudence over policy activism. For real estate, rate stability is a positive signal heading into the festive season, which is typically the strongest period for housing demand in India. We expect this continuity to support healthy residential sales momentum through the second half of 2026, particularly in the mid and premium segments where affordability is closely tied to interest rate sentiment.
Our commercial real estate fundamentals remain strong. Office demand is robust, warehousing and data centres continue to attract capital, and residential markets in key cities have sustained their momentum. The MPC still has a balancing act ahead; it must protect growth while staying watchful of inflation, which it says is likely to peak in the October-December quarter. Yet India's underlying strengths—a strong investment pipeline and resilient domestic demand—give us reason for confidence heading into the second half of the year."
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India
“Knight Frank welcomes the RBI's decision to keep the policy rates unchanged, viewing it as a well-calibrated move in an environment marked by inflationary pressures arising primarily from supply-side factors and ongoing geopolitical uncertainties. The decision underscores the central bank's balanced approach of supporting economic growth while remaining watchful of evolving global and domestic risks. A stable interest rate environment is likely to reinforce buyer confidence, provide greater certainty to businesses and investors, and ensure continued access to affordable financing. For the real estate sector, this policy continuity is expected to sustain housing demand and investment activity, particularly across residential and commercial segments, while supporting the sector's long-term growth trajectory.”
