New Delhi, April 09, 2025: The Reserve Bank of India’s move to reduce the repo rate by 25 basis points to 6% has been received positively by the real estate sector. As home loans are expected to become more affordable, many believe this could encourage more people to consider buying property. Developers also see this as a helpful step, as lower interest rates can ease borrowing costs and support faster project execution. With the RBI changing its policy stance to ‘accommodative’, there is also growing expectation of continued support in the coming months, which could further lift buyer confidence and market activity.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said, “The Reserve Bank of India’s decision to reduce the policy rate by 25 basis points to 6 percent comes at a crucial juncture when inflation is beginning to show signs of stability and the broader economic environment appears favorable for nurturing growth through lower interest rates. This proactive move is expected to significantly boost homebuyer sentiment, as reduced interest rates translate into improved affordability, thereby encouraging a larger number of people to consider investing in real estate. On the developer front, the lower cost of borrowing will offer a much-needed cushion, enabling them to fast-track project launches, expand their portfolios, and cater to the anticipated rise in housing demand. Overall, this policy rate cut is a timely and positive step that holds promise for stimulating activity across the entire real estate value chain, benefiting both end-users and industry stakeholders alike.”
Mr. Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited, said, “The RBI’s second consecutive rate cut is a welcome move and is expected to provide a strong boost to real estate demand, especially by making home loans more affordable for buyers.
In its latest review, the Monetary Policy Committee not only reduced the repo rate by 25 basis points but also shifted its stance from ‘neutral’ to ‘accommodative’ — a clear signal that, going forward, the MPC is now considering only two possibilities: status quo or further rate cuts.
This change in stance is extremely encouraging, especially for the housing sector. We anticipate more rate cuts in the coming quarters, and the biggest beneficiaries will be home loan borrowers—particularly those taking large-ticket loans for mid and premium homes. Lower interest rates enhance both affordability and loan eligibility, helping many fence-sitting buyers finally make their purchase decisions.
We also expect renewed interest in the high-end and luxury segments as improved purchasing power, combined with softening rates, makes aspirational living more attainable for a wider audience.”
Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The two consecutive policy rate reductions by the RBI, of 25 basis points each, are expected to significantly benefit home buyers. Many prospective buyers who had been cautiously observing the market are now likely to take a decisive step towards purchasing their dream homes. Simultaneously, the reduction in rates will lower borrowing costs for developers, encouraging them to launch more projects in the coming quarters to meet anticipated demand. This dual impact is expected to stimulate both housing demand and supply, providing a positive momentum to the real estate sector.”
Mr. Udit Jain, Director, ONE Group Developers, said, “The RBI’s decision to cut the repo rate is along expected lines. In its previous MPC review, the Governor had already hinted at the possibility of further rate cuts, and we now have a cumulative 50 basis points cut so far. The encouraging development is the RBI’s decision to shift its policy stance from ‘neutral’ to ‘accommodative’. This signals that, barring any major shocks, the MPC is likely to consider only two options going forward—status quo or further rate cuts.
This move bodes well for the broader real estate sector, especially when supported by improved liquidity and relatively stable property prices. If inflation continues on its current downward trajectory and macroeconomic indicators remain supportive, we may witness further monetary easing in the upcoming policy cycles—potentially driving even more momentum in housing demand.
Lower interest rates on home loans will benefit buyers across segments, from affordable housing to premium and luxury categories, making homeownership more accessible and attractive.”
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd, said, “The Reserve Bank of India’s decision to cut the repo rate by 25 basis points for the second consecutive time—bringing the total cut to 50 basis points—comes as a welcome move for borrowers and the real estate sector alike. This back-to-back reduction is not only a sign of improving macroeconomic stability but also a strategic push to boost consumption and home ownership.
Lowering the repo rate effectively brings down cost of capital for banks and housing finance companies, translating into cheaper home loans for borrowers. This makes home ownership more affordable, especially for first-time buyers and middle-class households.”