RBI Raises Repo Rate to 5.50%; Real Estate Sector Highlights Impact on Borrowing and Investment

Bilkul Bazaar

The Reserve Bank of India (RBI) has raised the repo rate by 25 basis points to 5.50%, marking a shift from the easing cycle seen through 2025. The decision reflects the central bank’s assessment of the evolving inflation and growth outlook.

Reacting to the RBI’s decision, Shekhar Patel, Managing Director & CEO, Ganesh Housing Limited, and President, CREDAI National, said that a stable macroeconomic environment remains important for sustaining investment confidence and supporting India’s long-term development aspirations.

RBI raises repo rate by 25 bps to 5.50 amid challenging global environment

Patel noted that the real estate sector will play an important role in India’s growth journey by creating homes, enabling businesses and generating employment. He said the impact of the rate hike on the sector would depend on lending conditions and the transmission of borrowing costs, while housing affordability and access to finance would remain key considerations for sustained growth.

On commercial real estate, Patel highlighted the continuing opportunities arising from India’s position as a destination for global capability centres (GCCs) and enterprise expansion. He said long-term occupier strategies, availability of talent and quality infrastructure would remain important drivers of demand alongside financing costs.

He also highlighted the potential of Ahmedabad and Gujarat to benefit from the expanding commercial real estate opportunity. According to Patel, Gujarat’s focus on infrastructure and its policy emphasis on GCCs and industry provide a supportive environment for investment, subject to effective implementation and broader market conditions.

Looking ahead, Patel emphasised the importance of continued coordination between policy, infrastructure and urban development to translate India’s economic potential into sustainable opportunities. He reaffirmed the real estate industry’s commitment to responsible development and to creating homes, workplaces and urban environments aligned with the vision of Viksit Bharat.