Indian real estate sector weathers unrelenting turbulence as the sentiment is pressured by Trump’s new 25 percent tariffs hikes and a notable 20 percent plunge in housing sales across top metros, as per the latest ANAROCK report. In Q2 2025 alone, just 96,285 homes were sold, a steep fall from 120,335 a year ago, indicating increasing buyer hesitancy and market uncertainty. Amid these headwinds, the central bank’s policy choices come with high relevance to initiate a turnaround and arrest further market deterioration.
The RBI has decided to keep the repo rates unchanged at 5.5 percent, also taking cognizance of the ongoing tariff uncertainties and the possible impact on the Indian economy.
Rajan Luthra, CFO, Action Construction Equipment (ACE)
The RBI’s decision to maintain the repo rate at 5.5 percent, coupled with a neutral stance and a projected GDP growth of 6.6 percent, reinforces confidence in India’s economic trajectory amid a challenging global environment. Continued momentum in government-led capital expenditure and infrastructure buildout, despite external headwinds such as new US tariffs, reflects the resilience of the Indian economy. For the construction equipment industry, this policy continuity ensures stability in financing conditions—critical for accelerating project execution timelines and enabling long-term planning. At ACE, we view this as a conducive environment to drive growth, deepen innovation, and support India’s broader infrastructure ambitions.
Prashant Sharma, President, NAREDCO Maharashtra
The RBI’s decision to maintain the repo rate at 5.5 percent despite easing inflation reflects a cautious yet balanced approach to managing global headwinds and domestic stability. For the real estate sector, a status quo on rates ensures continued momentum in homebuyer sentiment and sustains the affordability factor in housing. However, given the moderating inflation and macroeconomic uncertainties, the industry looks forward to a calibrated rate cut in upcoming reviews to further support growth, especially in the affordable and mid-income housing segments. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“The real estate sector has shown resilience despite global uncertainties. With inflation under control and GDP growth projected steadily, a repo rate cut would have been the perfect catalyst to trigger festive season demand. However, the RBI’s decision to hold the rate steady keeps the environment predictable and EMIs affordable. The industry remains cautiously optimistic that a more dovish stance could follow if inflation stays within the comfort zone.”
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