Mr. Neeraj Balani, Chief Customer Officer, Welspun One
“The current rate environment is likely to bring greater discipline to real estate, with investors placing greater emphasis on the quality and durability of underlying cash flows rather than relying on valuation expansion. This makes sustained leasing demand, occupancy and the ability of an asset to deliver long-term value increasingly important. For commercial and logistics real estate, this also reflects a larger shift in how businesses view these assets. Well-located, integrated developments are increasingly becoming part of the operational infrastructure of businesses, supporting supply chains, workforce needs, and market access. As a result, we expect capital to favour assets that are backed by genuine occupier demand and have a clear economic role, rather than being driven purely by the liquidity cycle.”
Mr. Umesh Uttamchandani, Managing Director, DevX
"A 25 basis point increase would signal that the RBI is prioritising price stability as inflation risks persist. Elevated crude and commodity prices, geopolitical uncertainty, rupee movements and tighter global financial conditions can add to imported inflation and put pressure on capital flows. A measured hike should help anchor inflation expectations while the RBI assesses how much further tightening is needed. With growth and domestic demand remaining resilient, the move is unlikely to materially alter the long-term trajectory of enterprise expansion, particularly as businesses continue to invest in India as a strategic market for technology, innovation and global operations.
For the commercial real estate sector, the immediate impact will be felt through the higher cost of capital and more deliberate investment decisions, particularly for businesses evaluating new office capacity and expansion plans. Costlier credit can also temper investment and consumption more broadly, and the extent will depend on how quickly the hike is transmitted through the banking system and on liquidity conditions. However, the underlying demand drivers for quality office space remain strong, supported by GCC expansion, enterprise growth and the continued evolution of India's services and technology ecosystem.
In this environment, managed workspaces can play an increasingly important role by allowing enterprises to scale their footprint with greater flexibility and lower upfront capital commitments. The ability to move into enterprise-grade, ready-to-operate offices also enables companies to align workspace investments more closely with their growth cycles.
At DevX, we continue to see demand from enterprises and GCCs that are looking for scalable, high-quality workspaces across established and emerging business markets. What will matter going forward is the pace and extent of any further tightening, and how businesses balance capital efficiency with their expansion requirements. Clarity on the policy path, alongside resilient growth and strong domestic demand, should continue to support India's office and managed workspace market.”
Ravi Agarwal, Chairman & Managing Director at Lloyds Realty Developers Ltd.
“The RBI's 25-basis-point repo rate hike is a calibrated move to keep inflation in check amid elevated crude prices, a softer rupee and global uncertainty. Importantly, the central bank's guidance on liquidity and the pace of future action will shape sentiment more than this single hike.
Although, despite the current environment, the homebuying market remains bullish, strengthened by the demand of the festive season. Buyers who have been waiting on the sidelines are returning, driven by auspicious timing and a strong desire to own a home. A modest rise in EMIs may lead some buyers to compare options more carefully, but it is unlikely to dampen end-user demand, especially for ready and near-completion homes. If anything, many buyers may move faster to lock in prices before further cost pressures build.
For developers, the rate hike raises the cost of capital, so disciplined execution and balance sheet strength matter even more. This is particularly true for redevelopment projects, which are a major growth driver in markets like Mumbai. These projects depend on timely approvals, financing and society consensus, and higher borrowing costs can squeeze viability if timelines stretch. At the same time, redevelopment continues to offer residents a clear path to modern, better-planned homes, and that structural need will sustain activity.
Going forward, clarity on the rate trajectory will be key. If inflation cools and growth stays resilient, a more supportive stance would further strengthen housing demand and investment.”
Shekhar Patel, Managing Director & CEO, Ganesh Housing Limited, and President, CREDAI National
”The RBI’s decision to raise the repo rate by 25 basis points to 5.50% reflects its assessment of the evolving inflation and growth outlook. A stable macroeconomic environment remains essential to sustaining investment confidence and supporting India’s long-term development aspirations.
Real estate has an important role in this journey—creating homes, enabling businesses, and generating employment across the economy. While the implications for borrowing costs will depend on lending conditions and transmission, housing affordability and access to finance remain important considerations for the sector’s sustained growth.
In commercial real estate, India’s position as a destination for global capability centres and enterprise expansion continues to create opportunities. Long-term occupier strategies, talent availability and quality infrastructure are likely to remain important drivers of demand alongside financing costs.
Cities such as Ahmedabad are well positioned to participate in this expanding opportunity. Gujarat’s emphasis on infrastructure and its policy focus on GCCs and industry provide a supportive context for investment, subject to implementation and broader market conditions.
Looking ahead, continued coordination across policy, infrastructure and urban development can help translate India’s economic potential into lasting opportunities. As an industry, our commitment remains to responsible development and to creating the homes, workplaces and urban environments that support the vision of Viksit Bharat”
Mr. Aakash Agarwal, Managing Director, Krisala Developers
“The 25-basis-point repo rate hike will have a measured impact on the housing market, with the larger question being how the rate and liquidity environment evolves from here. While the residential demand remains resilient, particularly as we enter the festive season with improving consumer sentiment, for developers, greater visibility on the rate cycle is important for financing, capital allocation and maintaining execution momentum across projects. In markets such as Pune, this demand is further supported by infrastructure development, employment growth, improving connectivity and the need for quality housing.
While buyers may become more conscious of financing costs, a single rate hike is unlikely to alter the underlying housing story. Developers who remain focused on disciplined execution, strong value propositions and delivery certainty will be well placed to navigate the current environment. With festive momentum supporting near-term demand and structural fundamentals remaining strong, we expect residential real estate to maintain a healthy growth trajectory.” – Mr. Aakash Agarwal, Managing Director, Krisala Developers."
