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.
Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd.
“The MPC’s decision to keep the repo rate unchanged is a balanced one, considering the broader economic landscape. For real estate stakeholders, especially in the advisory and sales ecosystem—this offers continuity in buyer behavior and home loan affordability. That said, a future rate cut would help unlock fence-sitters and attract a new wave of aspirational buyers, especially in the mid- and premium segments.”
Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF):
The decline in deposit rate is already putting a pressure on savers to look for alternative avenues to park their money. Also, the rising home prices have made investment in real estate unaffordable for investors, who in turn have shown an increasing preference for alternative investment funds (AIFs) which allow investment in real estate for as low as Rs. 1 crore, offers high returns, is regulated by SEBI and has a short gestation. Further cut in deposit rate will encourage investors to opt for this financialised product.
Shiwang Suraj, Founder & Director, InfraMantra
Considering the housing market scenario and increasing home loan off take, a rate cut would have helped propel the housing market. The NCR real estate market is on a strong footing and the demand continues to be strong with the region’s growing lifestyle aspiration, massive infrastructure development and demand for bigger homes leading to a surge in luxury housing.
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