The Reserve Bank of India’s six-member Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, is set to announce its February policy decision at 10 am on 6 February 2026, with markets widely expecting a pause on interest rates amid a cautious macroeconomic backdrop. The anticipated status quo from the RBI MPC meeting has drawn strong reactions from the real estate sector, where developers and investors say interest rate stability is critical to sustaining demand, especially among end-users who prioritise long-term affordability over short-term incentives.
Commenting on homebuyer sentiment, Aman Sharma, Founder and Managing Director, Aarize Group, said, “Today’s homebuyers are highly sensitive towards the change in interest rates, as they tend to make decisions based on long-term financial comfort rather than short-term incentives. So, we anticipate that the repo rate will be unchanged, giving the housing market much-needed predictability. Low interest rates encourage potential buyers to move forward with planned purchases, as a stable rate helps to maintain end-user confidence, makes transactions easier, and allows the housing market to grow while sustaining the real estate sector’s growth momentum.”
Echoing similar views, Ashish Agarwal, Director, AU Real Estate, highlighted the role of monetary stability in reinforcing real estate’s long-term value proposition. He noted, “The repo rates are expected to remain stable and supportive for a constructive year for real estate. The robustness in the repo rates is likely to induce sustained confidence among homebuyers and long-term investors alike. For premium buyers, invariability in borrowing costs supports decisive purchasing, while for investors it reinforces real estate’s role as a dependable store of value. The monetary stability, paired with the government’s continued thrust on capital expenditure, creates a strong foundation for asset creation and wealth preservation. Such alignment between fiscal intent and monetary conditions is essential as the housing market matures, encouraging quality development, disciplined capital deployment, and long-term demand. With time, the stability will help convert economic momentum into durable growth, supporting India’s journey towards a resilient and inclusive Viksit Bharat.”
Beyond mainstream residential segments, emerging asset classes such as senior living are also closely tracking the MPC outcome. Anil Godara, Founder and Managing Director, J Estates, stressed that predictable borrowing costs are vital for niche, long-gestation developments. He said, “We expect that the repo rate will remain unchanged, which is particularly important for emerging segments like senior living. This category depends on long-term investment planning and steady financing structures. Stable interest rates allow developers to build well-designed, service-oriented senior communities while keeping costs manageable for residents. Clarity on borrowing costs improves confidence, especially when projects integrate healthcare, assisted living, and wellness infrastructure. A stable rate environment will also encourage sustained investments into senior housing, helping the segment grow in a measured and sustainable manner.”
