Punjab Realty leaders welcome RBI’s decision to keep repo rate unchanged at 5.25%
Babushahi Bureau
Chandigarh, August 5, 2026: Leading real estate developers in Punjab have welcomed the Reserve Bank of India’s (RBI) decision to keep the benchmark repo rate unchanged at 5.25 per cent, saying the policy continuity will provide stability to the housing market, strengthen homebuyer confidence and support long-term investment in the sector.
The RBI’s Monetary Policy Committee (MPC) retained its neutral policy stance while keeping the Standing Deposit Facility (SDF) rate unchanged at 5 per cent and the Marginal Standing Facility (MSF) rate and bank rate at 5.5 per cent.
Reacting to the decision, Mrinal Mittal, Managing Director, Homeland Group, said maintaining the status quo on the repo rate was a positive development for the real estate sector.
“At a time when global developments continue to influence business sentiment, consistency in monetary policy provides the certainty required for long-term investment decisions. The resilience shown by the residential market in recent months reflects the strength of domestic demand, and today’s announcement allows that momentum to continue,” he said.
Mittal added that a stable interest-rate environment would provide better financial visibility to developers and homebuyers while reinforcing confidence in the long-term growth prospects of the sector.
Gurinder Bhatti, Chairman and Managing Director, GB Realty, said the RBI’s decision would support housing demand by ensuring greater predictability in borrowing costs.
“By maintaining the repo rate at 5.25 per cent, the RBI has ensured stability at a time when the housing sector continues to benefit from healthy end-user demand and improving buyer sentiment,” he said.
Bhatti noted that Punjab was no longer solely an NRI-driven real estate market, with a growing number of local homebuyers seeking to upgrade to organised and high-quality housing projects.
“Stable interest rates provide predictability in borrowing costs, strengthen buyer confidence and encourage long-term investment in housing. Coupled with accelerating infrastructure development and rapid urbanisation, Punjab is well positioned to emerge as one of North India’s most promising real estate destinations,” he said.
Tejpreet Singh Gill, Managing Director, Gillco Group, said the unchanged repo rate would provide much-needed stability to the housing market.
“With home loan rates expected to remain stable, buyers can plan their purchases with greater confidence, while developers can continue investing in project execution and future developments,” Gill said.
He added that the residential market had remained resilient, with demand continuing to be driven largely by end-users despite global economic uncertainties.
“In Punjab, improving infrastructure, expanding urban centres and a growing preference for organised townships and integrated communities are further strengthening buyer confidence. We believe this policy continuity will help sustain the sector’s growth momentum in the months ahead,” he said.
The RBI also lowered its Consumer Price Index (CPI) inflation forecast for the current financial year to 5 per cent, while cautioning that uncertainties related to the southwest monsoon, El Nino conditions, geopolitical developments, global oil prices and trade policies could affect the inflation outlook.