New Delhi, April 8 (IANS) Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25 per cent is likely to provide stability for mortgage rates, real estate industry leaders said on Wednesday. Shrinivas Rao, FRICS, CEO, Vestian welcomed the pause as a relief for developers and homebuyers as it will keep mortgage rates competitive when construction costs remain elevated over the ongoing West Asia crisis.Rao said the move could help cushion the impact of rising input costs on demand and allow stakeholders to recalibrate their strategies in response to evolving market dynamics.However, the current rate pause may be the last one before the repo rate begins its upward trajectory, he forecasted.Shishir Baijal, International Partner, Chairman & Managing Director, Knight Frank India said the neutral stance will provide much-needed predictability to the broader economy.

"Stable borrowing costs help preserve affordability for homebuyers while also enabling developers to plan with greater confidence. In an environment where sentiment can be easily influenced by macroeconomic signals, the absence of rate volatility acts as a reassuring factor for the market," Baijal said.Overall, the RBI’s decision helps maintain demand traction and provides the confidence needed for continued market activity in the near term, he said.Market analysts also flagged supply‑chain shocks and higher input prices as headwinds on ongoing and future construction activities."The intensity & duration of the ongoing crisis will have a significant bearing on consumption patterns including retail, hospitality and housing demand especially in the affordable & mid income segments," said Vimal Nadar, National Director & Head, Research, Colliers India.

Meanwhile, the Indian economy's strong fundamentals will provide a cushion for the real estate sector to remain resilient in the medium term, he forecasted.RBI has kept the repo rate unchanged at 5.25 per cent in its first MPC meeting of the fiscal year, signalling a ‘wait-and-watch’ approach amid ongoing West Asia crisis.The central bank projected the country’s inflation rate based on the Consumer Price Index (CPI) for 2026-27 at 4.6 per cent and the GDP growth at 6.9 per cent.

/IANS