Borrowers are keenly awaiting the outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, scheduled from June 3 to June 5, for cues on the future direction of interest rates and home loan EMIs.

While inflation has largely remained within the RBI’s comfort zone, policymakers continue to tread cautiously amid several emerging risks. Rising global energy prices could push up transportation and manufacturing costs, while concerns over weather-related disruptions and a possible El Niño impact may lead to higher food inflation in the coming months.

At the same time, signs of slowing economic growth have complicated the policy outlook, forcing the central bank to strike a delicate balance between supporting growth and keeping inflation under control. As a result, borrowers and markets alike will be closely tracking the MPC’s commentary for any indication of the RBI’s next move on interest rates.

Kunal Rishi, Chief Operating Officer, Krisumi Corporation, said, “The RBI is currently navigating a complex macroeconomic environment, where it must carefully balance inflation management with the need to sustain growth momentum. While inflationary pressures warrant close monitoring, global uncertainties and evolving geopolitical developments continue to create challenges for economic activity. In such a scenario, maintaining confidence across industries and supporting the broader growth trajectory remain equally important policy considerations. Given the prevailing volatility in the global environment, any further rate hike at this stage could weigh on industry sentiment, particularly across interest-sensitive sectors.

In this context, we believe the RBI should maintain its growth-supportive stance. The ideal approach would be to keep rates unchanged to support economic activity. For the housing sector, lower borrowing costs are critical to sustaining homebuyer demand and enhancing affordability. A supportive rate environment would encourage home purchases, strengthen consumer confidence, and provide a positive impetus to the real estate sector, which has strong linkages with the broader economy.”

The June MPC meeting comes at a critical time, with the RBI balancing growth concerns against potential inflation risks. While a status quo on rates is widely expected, markets will closely watch the central bank’s guidance on the future policy trajectory.

For homebuyers and borrowers, the outcome could provide important signals on the direction of lending rates in the coming months. A continued growth-supportive stance would be positive for housing demand, affordability and overall market sentiment.

While an immediate impact on EMIs may be unlikely, the RBI’s commentary could shape expectations around borrowing costs for the rest of the year.

Delhi-NCR, Bengaluru, and Hyderabad led the surge, recording impressive year-on-year (YoY) price jumps of 19%, 15%, and 13%, respectively. Within Delhi-NCR, Gurugram stood out as the top-performing market, with micro-markets such as Golf Course Extension Road and Dwarka Expressway emerging as preferred destinations for HNIs and working professionals.

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The sharp rise in property prices across Delhi-NCR clearly reflects the strong and sustained demand for quality homes. Infrastructure growth in the region, including the recent inauguration of the Delhi stretch of the Dwarka Expressway and UER-II, has further improved connectivity and boosted buyer confidence. Rising disposable incomes, supported by affordable loan rates and GST reforms, have also strengthened purchasing power.”

“Demand remains particularly robust in the premium segment, driven by the growing appetite of end users seeking better living standards. Together, these factors are not only reinforcing Delhi-NCR’s position as one of India’s most attractive real estate markets but also paving the way for continued growth and transformation in the years ahead,” he added.

Meanwhile, the Mumbai Metropolitan Region (MMR) retained its position as India’s most expensive property market, with average property prices climbing to INR 13,250 per sq. ft., marking a 7% YoY increase.

Among other prominent cities, Pune saw average property prices reach INR 7,250 per sq. ft., reflecting a 9% annual increase, supported by its excellent connectivity to employment hubs and a vibrant migrant population. Chennai also recorded a 9% uptick, fuelled by steady housing demand along the OMR corridor and expanding manufacturing activity.

In Kolkata, prices rose 8%, as market stability encouraged end-user participation, whereas Ahmedabad experienced a 7.9% rise, driven by a gradual transition from affordable to premium housing and ongoing infrastructure upgrades.

Overall, the steady rise in property prices across major Indian cities highlights the sector’s resilience and long-term potential. With sustained end-user demand, improving infrastructure, and favourable policy support, the real estate market is poised for continued momentum in the coming quarters.