Delhi NCR: The real estate industry has welcomed the decision of the Reserve Bank of India (RBI) to cut the repo rate by 25 basis points. This decision is being considered a positive sign for the entire economy including the real estate sector. Experts believe that this cut will make home loans cheaper and increase cash flow in the market, which will boost investment.
After the announcement of Budget 2025, now the Reserve Bank of India (RBI) has taken another important step, which is likely to give great relief not only to home buyers but also to the real estate sector. In fact, after 5 years, RBI has reduced the repo rate by 25 basis points to 6.25%. This will make home loans cheaper, which will reduce the EMI of lakhs of people and boost demand in the real estate market. Real estate experts believe that this decision will bring stability in the real estate market and give impetus to the real estate sector. So let us know what is the response from the real estate sector regarding this decision?
Mr. Sudeep Bhatt. Director Strategy, Whiteland Corporation said, “The RBI’s decision to reduce the policy repo rate by 25 basis points to 6.25% is a highly positive step for the real estate sector. After 11 consecutive rate holds, this cut will provide a much-needed boost to housing demand by making home loans more affordable. Lower interest rates translate into reduced EMIs, enhancing homebuyers’ purchasing power and encouraging more people to invest in property. Home loans will more affordable across all segments of housing and income groups. Additionally, it will ease liquidity concerns, enabling developers to access financing at better terms, further accelerating project completion and new launches.”
Mr. Manik Malik, CFO, BPTP said, “The revision in the repo rate by 25 basis points to 6.25% is a positive move for the economy, particularly for the real estate sector. This change in the policy rate is expected to ease borrowing costs, benefiting both developers and homebuyers. Developers will see financial relief through lower borrowing rates, enabling smoother project execution and keeping construction costs manageable. For homebuyers, this reduction in the repo rate translates into lower house loan EMIs, making homeownership more accessible. This could reignite buyer sentiment and boost demand in both the residential and commercial real estate markets. Overall, this timely intervention will support growth in the real estate sector, enhance investor confidence, and help maintain stability in property values. The move also aligns with the government’s broader efforts to encourage economic activity while ensuring fiscal discipline, and it offers a favorable outlook for both consumers and the industry at large.”
Mr. Yashank Wason, Managing Director, Royal Green Realty said, “The RBI MPC meeting led by governor Sanjay Malhotra has announced a repo rate reduction of 25 basis points to a 6.25% cut The rate has remained unchanged since February 2023. The rate cut will benefit homebuyers, since there will be a reduction in interest rates on home loans, leading to affordability. Loan EMIs will also reduce, which will be beneficial to refinance existing home loans.”
Mr. Rajat Mehta, Director, ElitePro Infra says, “The awaited RBI MPC meeting announcement has arrived. The committee has announced a 25 basis point reduction to 6.25%. For homebuyers, it is a positive news, making it a lenient approach on the part of the committee. The reduction will make home loans and EMIs affordable. Homebuyers can also go for floating rate loans for more affordable housing.”
Madhur Gupta, CEO Hero Realty said, “The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a positive step for homebuyers and the real estate sector. Lower interest rates will make home loans more affordable, easing the financial burden on borrowers and boosting housing demand. This move is expected to drive sales, especially in the mid-income and affordable housing segments. We urge banks to swiftly pass on the benefits to customers, ensuring maximum impact on home affordability and market growth.”
Mohit Agarwal, Business Head,Conscient Infrastructure Pvt. Ltd said, “The RBI’s decision to cut the repo rate by 25 bps to 6.25% is a welcome move for the premium real estate segment. After 11 consecutive rate holds, this reduction is expected to provide a much-needed boost to housing demand by making home loans more affordable. Lower borrowing costs will enhance affordability for luxury homebuyers and investors, boosting demand in high-end residential markets. This rate cut, coupled with the MPC’s neutral stance, signals stability, encouraging HNIs and NRIs to make strategic investments. We as a Developer may also benefit from reduced financing costs, enabling faster project execution. We anticipate renewed momentum in the luxury housing sector, especially in metro cities, as lower EMIs and attractive financing options drive buyer confidence.”
Gaurav K Singh, Founder and Chairman, Womeki Group, said “The RBI MPC concluded on a 25 basis points rate cut, with a repo rate of 6.25%. The decision will stimulate economic growth, further lowering borrowing costs. Home loans and EMIs will also reduce, making loans more attractive for potential homebuyers and investors. For the real estate sector, it is a welcoming move, which will foster a steady development across the market.”
Mr. Abhishek Singh, Director- V3 Infrasol said, “The recent 25 basis point reduction in the repo rate by the Reserve Bank of India signals a strategic shift aimed at stimulating economic growth amidst global uncertainties. For the real estate sector, this cut will play a crucial role in lowering home loan interest rates, which will, in turn, increase affordability for prospective buyers. As we’ve seen historically, lower borrowing costs boost demand for residential properties, creating a favorable environment for both end-users and investors. Additionally, the easing of monetary policy is expected to encourage further investments in the real estate sector, fostering growth in infrastructure, housing, and commercial real estate. It is important, however, to closely monitor inflationary pressures and ensure that the overall policy framework supports long-term stability in the economy. This move demonstrates the RBI’s commitment to supporting recovery while maintaining a balanced approach to price stability and growth.”
