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.
Vijay Harsh Jha, Founder and CEO, VS Realtors
We would have expected the RBI to cut repo rate to support the growth in India’s economy amidst certain uncertainties on global and domestic fronts. Housing sales, too, have shown signs of slowdown and the cut in repo rate now would have enabled homebuyers to plan for the upcoming festive season purchases. Current trends suggest that housing sales in Delhi-NCR remains on growth trajectory and a boost would further accelerate sales going forward.
Samir Jasuja, Founder & CEO, PropEquity
RBI has sounded a positive note on India’s growth outlook. However, with the ongoing trade war, geo-political tensions, volatility in global financial market and tech sector layoffs in India may have some repercussion on India’s economic growth going forward including in sectors like exports, real estate etc. Housing sales have also come down from its highs. While the RBI has cut repo rate by 100bps in 2025 to 5.5 percent, it was, however, pertinent that the apex bank continued its easing stance in its announcement today to provide support to India’s growth amidst falling inflation and good monsoon.
According to PropEquity, housing sales in India’s top 9 cities fell by 17 percent YoY in H1 2025 to 2.08 lakh units and sales value fell by 10 percent to Rs 2.94 lakh crore. Launches have also declined by 18 percent YoY in H1 2025 to 1.99 lakh units.
Parvinder Singh, CEO, Trident Realty
Trident Realty welcomes the RBI's sustained decision to maintain the repo rate steady. In today's economic climate, which is characterized by consistent inflation and global uncertainities, such stability is both reassuring and encouraging for the real estate industry. A stable interest rate environment gives homebuyers the confidence to prepare for the future, while allowing developers like us to focus on long-term, value-driven projects. It reflects a broader trust in the resilience of the Indian economy and supports a healthy investment environment. This not only positively impacts the sentiment in the housing market, but it also reinforces our focus to building sustainable, future-ready developments that cater to the constantly evolving demands of today's homebuyers and communities."
Ashish Agarwal, Director, AU Real Estate
We appreciate the RBI’s decision to maintain the repo rate, as it brings much-needed stability to the real estate sector. At AU Real Estate, the sustained stability of the repo rate brings much-needed confidence and clarity the market, especially for high-value, long-term investments like luxury properties. Stable interest rates play a vital role in enhancing the affordability and accessibility of homeownership. As financing becomes more accessible, we anticipate a growing demand for luxury housing, driven by buyers seeking homes that truly embody their personal aspirations. This environment not only strengthens buyer confidence but also empowers us to continue delivering exceptional, high-quality living spaces within the luxury segment.
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