India, Feb. 6 -- The Reserve Bank of India's decision to keep its benchmark interest rate unchanged on February 6 is expected to bring stability and predictability to borrowing costs, supporting homebuyer confidence. While some real estate experts say the pause will help new borrowers plan housing purchases with greater certainty, others argue that elevated property prices continue to strain affordability, particularly in affordable and mid-segment housing, and that a rate cut could have nudged fence-sitters back into the market.

RBI also proposed to allow banks to lend to Real Estate Investment Trusts (REITs) with certain prudential safeguards to deepen the financing pool for the real estate sector.

The central bank's six-member Moneta...