Repo rate reduced to 6%; real estate leaders say the move improves housing affordability, boosts sentiment, and supports economic revival
In a significant move that spells good news for homebuyers across India, the Reserve Bank of India (RBI) has slashed the repo rate by 25 basis points to 6%, marking its second consecutive cut. The decision, aimed at supporting economic growth amid global uncertainties, has been widely welcomed by real estate stakeholders for its potential to stimulate housing demand and improve affordability—especially for end-users in the affordable and mid-income segments.
Here’s what the real estate and financial leaders have to say:
A Welcome Move to Boost Buyer Sentiment
Prashant Sharma, President, NAREDCO Maharashtra, said the rate cut “comes as a welcome and timely move” and will act as a much-needed catalyst to revive both consumption and investment cycles. He emphasized its impact on improving affordability and boosting sentiment in the affordable and mid-income segments.
Shraddha Kedia-Agarwal, Director at Transcon Developers, called it a “strategic push” toward economic revival. “Lower interest rates make home loans more attractive, especially in metros like Mumbai. This will go a long way in supporting buyer sentiment and end-user driven purchases,” she added.
Boman Irani, President, CREDAI National, hailed the move as “pro-growth,” especially with inflation expected to moderate to 4.5%. He noted it would enhance borrowing capacity and uplift housing demand, particularly in rate-sensitive categories.
Transmission Still a Concern
Anuj Puri, Chairman, ANAROCK Group, struck a cautious tone. “Banks have not fully transmitted earlier rate cuts due to funding pressures and high NPAs. If they do now, it will help homebuyers—especially first-timers looking at affordable housing,” he noted. He also flagged a 17% average rise in housing prices across top 7 cities year-on-year, which makes rate transmission crucial for EMI relief.
Affordability and Access to Housing in Focus
Anurag Goel, Director, Goel Ganga Developments, said the move is especially beneficial for EMI-dependent homebuyers. “This will strengthen buyer confidence and improve conversion rates from inquiry to booking, particularly in Tier 1 and Tier 2 cities,” he noted.
Chintan Sheth, CMD of Sheth Realty, added that lower rates would “usher benefits across affordable, mid-income, and premium segments.”
Jash Panchamia, Promoter of Suraksha Smart City, emphasized the positive impact on PMAY beneficiaries and the EWS segment, saying it supports the government’s vision of ‘Housing for All’.
Real Estate Developers: Ready to Launch and Expand
Parthh K Mehta, CMD of Paradigm Realty, said this move creates opportunities in luxury housing, enabling developers to launch “iconic projects backed by favorable financing.”
Bhavesh Shah, JMD of Today Group, noted that the rate cut could significantly drive sales in growth hubs like Navi Mumbai.
Mohit Goel, MD, Omaxe Ltd., called it a “catalyst for demand revival,” adding that lower borrowing costs will ease financial burdens for both homebuyers and developers.
Macro Trends, Tariff Concerns, and Future Outlook
Vimal Nadar, Head of Research at Colliers India, explained that while global tariff escalations remain a concern, the RBI’s “accommodative” stance will help boost domestic consumption and housing demand.
Amit Goyal, MD, India Sotheby’s International Realty, agreed: “If passed on to borrowers, this cut will help the real estate sector navigate global economic uncertainty.”
Anshul Jain of Cushman & Wakefield emphasized the positive shift from “neutral” to “accommodative,” reinforcing the RBI’s growth-supportive intent and likely future rate cuts.
Shrinivas Rao, CEO of Vestian, said, “The policy shift and easing inflation suggest mortgage rates could drop further, enhancing real estate demand.”
Sanjay Daga, CEO of Anex Advisory, pointed out that further cuts may be needed to offset tariff pressures and stock market volatility.
For FD Investors: Time to Reassess Strategy
Aman Gupta, Director of RPS Group, warned that declining rates mean FD investors should revisit their strategies. He recommended exploring small finance banks for better rates, considering tax-efficient instruments like SCSS, and maintaining an emergency fund while diversifying into hybrid funds cautiously.
Bottom Line for Homebuyers:
- Lower EMIs could be on the horizon—if banks pass on the cut.
- First-time and budget-sensitive buyers stand to benefit the most.
- Developers gain breathing room, which may lead to new launches and faster project completions.
- Real estate remains a safe, long-term asset, especially amid global uncertainty.
Whether you’re looking to buy your first home or refinance an existing loan, this rate cut offers an opportunity to reassess your home finance strategy and potentially act before prices or interest rates climb again.
