For homebuyers, the biggest immediate impact is stability in home loan Equated Monthly Instalments (EMIs). Since most floating-rate home loans are linked to external benchmarks like the repo rate, today’s hold means no upward revision in borrowing costs. Existing borrowers avoid any EMI shock, while new buyers gain predictability to plan purchases without fear of sudden rate hikes.

Industry experts and real estate leaders have welcomed the move for providing much-needed certainty in an environment of rising economic optimism post-Union Budget 2026-27, improved trade agreements, and infrastructure momentum.

Prashant Sharma, President, NAREDCO Maharashtra, noted: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector… policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, added: “Stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity… reinforcing real estate’s appeal as a stable, long-term asset class.”

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group, highlighted: “This policy stability brings much-needed clarity on financing costs… we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”

Shilpin Tater, Managing Director, Superb Realty, said: “The RBI’s neutral stance… will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized: “Stable borrowing costs… create a supportive environment for housing demand, especially in metropolitan markets… This policy continuity will help sustain residential demand and support long-term housing affordability.”

Dhruman Shah, Promoter, Ariha Group, observed: “The continued pause on interest rates provides much-needed predictability… positioning the sector for stable, long-term growth.”

Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., stated: “Unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes.”

Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, provided deeper insight: “The unchanged rate… preserves stability in borrowing costs, supporting consumer spending, housing demand, and business investment… The residential market… experienced a sales slowdown in 2025… the combination of accelerated GDP growth, moderating housing price appreciation, and the prospect of additional rate cuts is expected to revive housing sales volumes in 2026.”

Anuj Puri, Chairman – ANAROCK Group, pointed out a balanced view: “RBI’s decision… means that home loan EMIs will not change… This will keep buyers engaged but does nothing to lift demand further… A rate cut would have potentially brought at least some fence-sitters back to the market.” He noted subdued affordable housing trends and called for targeted fiscal measures.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, said: “An unchanged rate has ensured that EMIs on floating-rate loans remain steady, offering predictability… This clarity on borrowing costs has supported affordability and enabled homebuyers… to plan long-term purchases with greater confidence.”

Dharmendra Raichura, VP and Head of Finance, Ashar Group, concluded: “An unchanged rate environment brings stability to funding costs… From a homebuyer’s perspective, predictable lending rates preserve EMI visibility and reinforce purchase confidence.”

While the hold shields EMIs from rises and supports overall sector momentum amid a robust 7.4% GDP growth outlook for FY26, experts note that affordability challenges persist in segments like affordable housing. Many anticipate potential future cuts if inflation remains controlled, which could further ease EMIs.

This policy continuity underscores the RBI’s calibrated approach—balancing growth support with inflation vigilance—offering homebuyers a window of EMI stability to make informed decisions in a strengthening economy.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post How RBI’s Unchanged Repo Rate at 5.25% Keeps Home Loan EMIs Steady: A Boost for Homebuyers’ Financial Planning appeared first on Square Feat India.

A repo rate cut is one of the quickest ways to soften the cost of borrowing. For homebuyers, this translates into lower EMIs, especially because most home loans today are linked to external benchmark rates that transmit policy changes faster than earlier systems. If banks pass on the full 25 bps cut, borrowers can expect a meaningful drop in monthly EMIs, improving affordability across segments.

Lower EMIs Can Revive Demand — Especially in Affordable & Mid-Income Housing

Real estate experts view this decision as well-timed and transformational.

Shishir Baijal – Knight Frank India

“We welcome the RBI’s positive move to cut rates by 25 bps, as it signals growing confidence that inflation will remain low on a durable basis. The reduction in borrowing costs should offer timely relief to the real estate sector… We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters.”

Baijal’s point about sequential declines is critical—end-user demand in these segments had begun softening as property prices rose across major markets.

Price-Rise Pressure Meets a Rate-Cut Cushion

According to ANAROCK Research, average housing prices across India’s top 7 cities jumped nearly 10% in 2025. For many buyers, this created a affordability mismatch—even if incomes were rising.

Anuj Puri – ANAROCK Group

“The RBI’s decision to cut the repo rate by 25 bps is a distinct positive… this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments which are highly sensitive to interest rate fluctuations.”

“This rate cut provides a critical cushion to affordability… encouraging aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge.”

Puri also highlights a crucial factor: swift transmission.

“If banks swiftly pass on this rate cut to borrowers, we anticipate a renewed surge in sales velocity carrying firmly into Q1 2026.”

Luxury housing is expected to stay strong irrespective of the rate cut, but the biggest boost will likely come from fence-sitters in the mid and affordable categories.

Developers See This as a Sentiment Lifter for Both Buyers & Builders

Manju Yagnik – Nahar Group / NAREDCO Maharashtra

“A 25 basis point rate cut at this stage will meaningfully support homebuyer sentiment and improve affordability across categories. Demand has remained resilient despite elevated prices, and a reduction in borrowing costs will give fence sitters the confidence to move ahead with their purchase decisions.”

Yagnik adds that developers too gain from a softer rate environment, especially with persistent inflationary pressures in construction materials.

“The real estate sector has been navigating higher input costs… so a softer rate environment will ease financial pressure for both buyers and developers.”

Rupee Depreciation Adds Another Layer to the Demand Story

Dharmendra Raichura – Ashar Group

“The rate cut to 5.25% gives an immediate boost to affordability for home-buyers… At the same time, the depreciation of the rupee makes imported building materials costlier — a challenge for developers’ margins.”

Interestingly, this same rupee weakness creates a positive effect too:

“For NRIs… the weaker rupee makes Indian real estate more attractive and affordable, balancing demand dynamics.”

Developers who manage cost inflation well stand to gain from increased NRI participation and a broader buyer base.

A Macroeconomic Signal of Confidence — With Direct EMI Relief

Dr. Samantak Das – JLL India

“The RBI’s decision to cut the repo rate by 25 bps is a powerful, proactive signal that strategically leverages India’s macroeconomic strength — a robust 8.2% Q2 GDP expansion alongside record-low inflation.”

Das stresses that this is not a reactive move but a strategic push to make growth more inclusive.

“For the residential sector, this is a direct boost to affordability… Given the high penetration of external benchmark-linked loans, the transmission to homebuyers is expected to be quick, providing tangible EMI relief.”

He also notes that India saw price resistance in the affordable and mid-segment categories this year, with projected residential sales 8–9% lower than last year in the top cities.

The repo cut, therefore, is seen as a catalyst:

“This move… will activate the crucial segment of first-time affordable and mid-market homebuyers who have been waiting on the sidelines.”

Das expects demand revival not just in metros but across India’s Tier 2 and Tier 3 cities as well.

What This Means for You: Lower EMIs, Higher Eligibility

If banks pass on the full 25 bps cut:

• Your home loan EMI will reduce across floating-rate loans.
• Loan eligibility increases because your EMI-to-income ratio improves.
• First-time buyers in mid-income segments will find it easier to enter the market.
• Developers get relief through better sales momentum and sentiment stability.

This rate cut has arrived at a moment when the market needed a confidence push—and it may very well carry the housing sector with stronger momentum into 2026.

Also Read: RBI Repo Rate Hike May impact Home buyer sentiments

The post Repo Rate Cut to 5.25%: How Your Home Loan EMI Will Now Fall appeared first on Square Feat India.

For homebuyers, this decision directly translates into predictable EMIs and continued affordability of home loans—a crucial factor as the festive season approaches. While developers were hoping for a rate cut to spur even more demand, the current stability provides a conducive environment for long-term planning and financial confidence.

Why This Matters for You as a Homebuyer

Industry experts believe the RBI’s decision will help preserve affordability and sustain housing demand, particularly in mid- and premium-segment homes, which have seen steady interest despite recent global headwinds.

Prashant Sharma, President of NAREDCO Maharashtra, called the move a “cautious yet balanced approach” that keeps homebuyer sentiment strong. He added that while the sector welcomes stability, a calibrated rate cut in the future could further support growth—especially in affordable housing.

Rajiv Agrawal, Promoter & Co-Founder of Saarathi Group, highlighted that unchanged borrowing costs will aid Mumbai’s wave of redevelopment projects, making long-gestation cluster and society redevelopments more financially feasible. This means buyers can expect timely project deliveries and fresh housing supply in urban areas.

Similarly, Virendra Vora, Promoter & MD of Excel Infra Construction LLP, said stable rates are a “positive signal for Mumbai’s next wave of urban regeneration,” making it easier for developers to launch premium redeveloped homes in high-potential zones like Bandra Reclamation.

Bank Loan Rates & Market Momentum

Shishir Baijal, CMD of Knight Frank India, noted that with some banks already reducing home loan rates, policy stability will encourage affordability—especially in mid- and low-income segments. He said, “More transmission of past cuts is underway, which will further support housing demand.”

Dr. Samantak Das, Chief Economist, JLL, explained that after 100 basis points of rate cuts this year, holding rates now gives the system time to fully pass on benefits to buyers. He stressed that stability helps avoid over-reliance on rate cuts and instead builds a market driven by genuine demand.

However, the affordable housing market is facing challenges. Anuj Puri, Chairman of ANAROCK Group, pointed out that sales in the top metros fell by 20% year-on-year in Q2 2025, and average residential prices have surged 39% in two years. The ongoing US tariffs could impact MSMEs—the key customer base for affordable homes. Still, he expects developers to roll out festive offers and flexible payment plans to improve affordability.

Confidence, Festive Season, and Long-Term Growth

Multiple developers and analysts agree that stability will reinforce buyer confidence ahead of the festive season.

• Manju Yagnik, Vice Chairperson of Nahar Group, believes steady rates will support sustained demand in high-growth markets by keeping EMIs manageable.
• Dharmendra Raichura of Ashar Group said unchanged rates, combined with infrastructure development in regions like MMR and Thane, will keep housing demand strong.
• Sunny Bijlani of Supreme Universal added that policy stability will attract both domestic and NRI buyers, especially as urbanisation and lifestyle aspirations rise.

From the luxury segment perspective, Amit Goyal, MD of India Sotheby’s International Realty, said that with GDP growth forecast at 6.5% and inflation trending softer, housing momentum will stay “cautiously positive.”

What Experts Want Next

While most agree that holding rates now is prudent, there’s anticipation for a possible rate cut in the October policy review.

• Piyush Bothra of Square Yards said the onus is now on banks to ensure full transmission of past cuts to homebuyers.
• Vimal Nadar of Colliers India highlighted that with inflation under control, upcoming quarters could see further reductions passed on, boosting buyer activity during the festive season.
• Amit Prakash Singh of Urban Money stressed that a cut in October could act as a “timely catalyst” to boost festive demand.
• Shrinivas Rao of Vestian added that the RBI’s neutral stance will encourage fence-sitters to make investment decisions.

Bottom Line for Homebuyers

The RBI’s decision may not have brought a fresh cut in rates, but it keeps the ground steady for you to plan your purchase without fear of sudden EMI shocks. With the festive season around the corner, stable policy, possible future cuts, and developer incentives could make the next few months a strategic window for homebuyers.

Also Read: RBI Cuts Repo Rate by 25bps: Lower Home Loan Interest for Homebuyers

The post RBI Holds Repo Rate at 5.5% — Home Loan Interest To Remain As It Is appeared first on Square Feat India.

Affordability Index – EMI as % of Household Income

Source: Knight Frank India, H1 2025

What Does 48% Affordability Mean?

Simply put: If you earn ₹1,00,000 a month in Mumbai, you’ll spend ₹48,000 on your home loan EMI — leaving you with ₹52,000 for everything else (groceries, kids’ fees, travel, savings).

Why it matters:
According to banks and global standards, an EMI above 50% of income is considered unaffordable. This means many homebuyers in Mumbai either:

• Stretch their budget beyond safety limits
• Depend on double incomes
• Or compromise on home size or location

Mumbai Drops Below 50% Mark — A First

“For the first time ever, Mumbai’s affordability level has dropped below the 50% threshold,” said the Knight Frank report.

This improvement is credited to the RBI’s 100 basis points repo rate cut in 2025, which lowered home loan interest rates and made EMIs lighter for borrowers.

Example: EMI Comparison – Mumbai vs. Ahmedabad

Mumbai homebuyers pay over 2.5x more of their salary in EMI than those in Ahmedabad.

NCR Only City Where Affordability Worsened

Despite the repo rate cut, affordability in NCR worsened — EMI burden rose from 27% to 28%. This was due to steep property price hikes, which outweighed the benefit of lower interest rates.

Expert Insight: What’s Next for Buyers?

“Affordability plays a critical role in sustaining demand. With strong GDP growth and lower interest rates, we expect housing momentum to remain positive in 2025,”
— Shishir Baijal, CMD, Knight Frank India

Affordability Trends Over the Years (Mumbai)

Gradual but significant improvement in a decade.

Conclusion: Mumbai is Still a Dream – But a Costly One

Even with rate cuts and economic growth, owning a home in Mumbai remains a financial stretch for the average household. The small drop in EMI burden is a step in the right direction, but unless home prices stabilize or incomes rise faster, true affordability may still be a distant goal for many.

Also Read: Home Purchase Affordability Index

The post In Mumbai, You’ll Need to Spend 48% of Your Salary on EMI to Afford a Home appeared first on Square Feat India.

Leading banks including HDFC Bank, Canara Bank, and Bank of Baroda have swiftly responded by reducing their marginal cost of funds-based lending rates (MCLRs), passing on the benefits to borrowers. The rate cuts are expected to lower home loan EMIs, bringing relief to both prospective and existing borrowers under floating-rate loan schemes.

The State Bank of India (SBI), the country’s largest lender, also moved to ease borrowing costs, slashing its lending rates by 50 basis points. Effective June 15, SBI’s repo-linked lending rate (RLLR) now stands at 7.75%, while its external benchmark-based lending rate (EBLR) has dropped from 8.65% to 8.15%. However, other major public sector lenders such as Punjab National Bank (PNB) have opted to keep their lending rates unchanged for now, reflecting a more cautious approach.

The overall reduction in borrowing costs is being welcomed by industry leaders and analysts, who believe the move will rekindle buyer interest, especially in the affordable and mid-income housing segments.

Industry Welcomes Move

Prashant Sharma, President of NAREDCO Maharashtra, praised the development, saying, “The interest rate correction is a timely booster for the housing sector. Reduced EMIs will not only revive fence-sitters but also give impetus to end-user-driven demand. We expect this to translate into improved sales velocity, particularly in Tier-I cities like Mumbai and Pune.”

Echoing this sentiment, Nishant Deshmukh, Founder and Managing Partner of Sugee Group, said, “The reduction in lending rates offers much-needed and immediate relief to homebuyers, particularly those dependent on home loans to realise their dream of homeownership. Lower EMIs ease financial pressure and make property ownership more accessible. This positive shift will help restore buyer confidence and support long-term growth in the real estate sector.”

Shraddha Kedia-Agarwal, Director at Transcon Developers, added, “The revised rates will allow homebuyers — especially first-time buyers — to re-evaluate their budgets and invest in homes with better amenities and lifestyle offerings. For developers, this could catalyse fresh enquiries and faster conversions.”

Outlook for the Sector

With lending rates now trending downward and broader macroeconomic indicators showing signs of stability, the real estate sector appears poised for a more broad-based recovery. Market experts believe this shift could be the start of a sustained revival, balancing affordability with aspirational housing needs.

The RBI’s move, coupled with proactive rate revisions by banks, is expected to stimulate demand, boost market sentiment, and strengthen the foundation for long-term growth in India’s housing sector through 2025 and beyond.

Also Read: RBI RR Hike to Impact home sales

The post Home Loan EMIs to Fall as Banks Cut Lending Rates; Real Estate Sector Set for a Boost appeared first on Square Feat India.

In a much-anticipated move that spells good news for homebuyers, the Reserve Bank of India (RBI) has slashed the repo rate by 50 basis points (bps), bringing it down to 5.5%. This is the third consecutive cut in 2025, aimed at reducing borrowing costs and improving affordability amid a backdrop of moderating inflation and global economic uncertainty.

The rate cut is a double win for the real estate sector, particularly affordable and mid-income housing, which has been struggling post-pandemic. The RBI also reduced the Cash Reserve Ratio (CRR), enhancing liquidity in the banking system and enabling more robust lending.

Lower EMIs, Higher Affordability

Industry experts unanimously agree that this move will bring relief to homebuyers, particularly first-time buyers and those eyeing mid-segment properties. With home loan interest rates likely to fall below 7.75%, monthly EMIs are expected to become significantly lighter, making homeownership more accessible.

Anuj Puri, Chairman of ANAROCK Group, noted that while affordable housing has seen a decline in both sales and new launches since 2019, a 19% dip in unsold inventory indicates that demand remains strong among end-users. “This rate cut makes borrowing cheaper for buyers and developers alike, and we hope the banks pass on the full benefit,” he said.

Boost for Developers and Project Timelines

Developers also stand to benefit from the RBI’s liquidity push. The CRR cut means banks have more capital to lend, potentially improving funding for project development and timely completion. Manju Yagnik, Vice Chairperson of Nahar Group, emphasized that this will help revive interest in both mid-income and premium housing, easing liquidity issues and stimulating fresh demand.

“This cascading effect through the lending ecosystem will not only improve affordability but also unlock capital needed to absorb unsold inventory and support over 200 allied industries tied to real estate,” Yagnik said.

Shift in Market Focus

According to Shishir Baijal, Chairman and MD at Knight Frank India, the rate cuts are likely to rebalance housing market activity, which has been skewed towards premium housing in recent years. “The RBI’s cumulative 100 bps reduction is expected to reignite interest in the lower segments and give longer legs to the ongoing housing upcycle,” he said.

Dharmendra Raichura, VP & Head of Finance at Ashar Group, sees the move as a confidence booster. “Lower rates improve sentiment, enabling developers to offer better deals and launch new projects,” he added.

Premium Segment to Benefit Too

Even premium housing could get a lift. Sunny Bijlani, Joint Managing Director at Supreme Universal, said the rate cut will make larger, lifestyle-oriented homes more attainable. “This boost in affordability and confidence enables developers to focus on quality and timely delivery,” he added.

Positive Macro Outlook Despite Global Headwinds

While global economic risks—like rising import costs due to trade tensions—pose a challenge, India’s growth fundamentals remain solid. Kanika Singh, Chief Risk Officer at IMGC, highlighted the significance of the repo rate being at a three-year low. “If banks transmit the rate cut effectively, homebuyers will see substantial EMI relief,” she said.

She also hinted at possible further rate cuts if inflation stays under control and geopolitical uncertainties continue.

Conclusion

With a decisive 50 bps cut in repo and supportive liquidity measures, the RBI has set the stage for stronger homebuyer sentiment and broader real estate revival. The focus now shifts to banks’ timely transmission of these benefits, and developers’ responsiveness to renewed demand. For those planning to buy a home, this could be the ideal window to act.

Also Read: RBI Repo Rate Hike May impact Home buyer sentiments

The post Homebuyers Rejoice: RBI’s 50 bps Rate Cut Lowers EMIs, Boosts Affordable Housing Prospects appeared first on Square Feat India.

Inflation Eases, Expectations Rise

With inflation cooling to 3.16% in April 2025 — well below the RBI’s 4% target — and GDP growth stabilizing, economists and real estate leaders say the central bank has room to continue its accommodative stance.

“The RBI is expected to provide major relief to homebuyers by reducing the repo rate by 25 bps,” said Pradeep Aggarwal, Chairman of Signature Global. “This will encourage first-time homebuyers and investors to re-enter the market.”

Positive Sentiment in Real Estate

The real estate sector, especially the affordable and mid-income segments, is highly sensitive to changes in interest rates. Lower EMIs can make homeownership viable for millions who were priced out due to rising property prices and borrowing costs.

“With each rate cut, affordability improves significantly,” noted Piyush Bothra, CFO of Square Yards. “Even a 1% interest rate drop can increase a homebuyer’s purchasing power by nearly 10%.”

According to Anurag Goel of Goel Ganga Developments, “A 50 bps cut would reduce EMIs by about ₹1,200 on a ₹50 lakh home loan over 20 years — a meaningful difference for salaried homebuyers.”

Real Estate Sector at a Crossroads

Despite long-term potential, the real estate market is grappling with challenges — a 28% drop in residential sales in India’s top 7 cities (Q1 2025 vs Q1 2024), tight lending conditions, and high construction costs.

“Lower borrowing costs could stimulate stalled demand in affordable housing,” said Anuj Puri, Chairman of ANAROCK. “But transmission is key — banks must ensure end borrowers actually benefit.”

Affordable housing, once dominant, now makes up only 18% of total residential sales (down from 38% in 2019), according to ANAROCK. Yet a 19% drop in unsold affordable units signals there’s still strong demand from genuine end-users — if financing becomes easier.

What Homebuyers Should Watch For

• Rate Transmission: Not all banks pass rate cuts equally. Repo-linked loans benefit faster; MCLR-linked loans may take longer.
• Refinancing Opportunity: If cumulative rate cuts hit 75–100 bps, borrowers with older loans could save ₹6–7 lakh on a ₹50 lakh loan by refinancing.
• Tenure vs EMI: Banks may prefer shortening loan tenures instead of reducing EMIs. Homebuyers should negotiate for better terms.

“Now is a good time for homebuyers to explore options, compare rates, and check reset clauses,” said LC Mittal of Motia Group. “If you’re planning to buy or refinance, this policy cycle could be your moment.”

Bottom Line for Homebuyers

With inflation under control and macroeconomic indicators stable, the stage is set for a potential repo rate cut in the June MPC meeting. If banks swiftly transmit this to home loan rates, homebuyers could see lower EMIs, better loan eligibility, and enhanced affordability — all of which can be game-changers in today’s high-priced housing market.

Also Read: RBI repo rate hike

The post Homebuyers May Get EMI Relief Soon as Experts Predict RBI Repo Rate Cut in June MPC Meet appeared first on Square Feat India.

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.

Also Read: RBI makes Homebuyers happy, Repo rates unchanged

The post RBI Rate Cut Brings Good News for Homebuyers: Lower EMIs appeared first on Square Feat India.