Homebuyers are currently driven by long-term confidence rather than short-term rate fluctuations..!.
MPC Keeps
Rate Unchanged Amid Tariff Turmoil
Anuj
Puri, Chairman - ANAROCK Group:
Indian real
estate weathers unrelenting turbulence as the sentiment is pressured by Trump’s
new 25% tariffs and a notable 20% plunge in housing sales across top metros, as
per the latest ANAROCK data. 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%, also taking cognizance of
the ongoing tariff uncertainties and the possible impact on the Indian economy.
A rate cut leading to lower interest rate environment would have particularly
boosted the affordable housing segment, which has been under considerable
pressure in recent years.
ANAROCK
data shows that average residential prices across the top 7 cities combined
have increased by 39% in the last two years alone – from INR 6,470 per sq. ft.
as of Q2 2023 to INR 8,990 per sq. ft. as of Q2 2025. The affordable housing
segment’s fate may be further dampened by the ongoing global trade tensions and
tariffs imposed by the Trump administration. This is largely because of its
impact on the MSMEs – the key target audience of the affordable segment.
That
said, overall, homebuyers are currently driven by long-term confidence rather
than short-term rate fluctuations. Given the upcoming festive season,
developers may look to keep the market momentum going with offers and flexible
payment plans, which may help improve affordability for
many genuine buyers.
