Samir Jasuja, Founder & CEO, PropEquity
Average housing prices have risen by approximately 50% post-Covid. At this juncture, the two consecutive cuts in repo rate, in February and April 2025, will provide a cushion to home loan borrowers as EMIs will come down.
As home loan rates drop, fence-sitters will be encouraged to make housing purchases. Developers will benefit from reduction in borrowing cost thereby enabling them to expand and launch new projects. The change in stance to accommodative signals further rate cut, a welcome move for the housing sector.
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Real estate developer Sanjeevini Group Chairman and Founder, Umesh Gowda H.A
With inflation dropping within RBI’s comfort zone, the two consecutive rate cuts will give a fillip to the housing sector as rate cut transmission by banks will lead to home loan rate falling below 8% for most banks thereby benefiting a large section of new and existing borrowers. The rate cut will provide a momentum to India’s domestic demand and help sustain India’s economic growth in the wake of global uncertainties. RBI shifting to accommodative stance means the apex bank will further cut rates or maintain status quo.
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Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF):
The two consecutive reductions (50bps) in repo rate are a welcome move by RBI to spur consumption demand and economic growth in view of the global uncertainties and decline in inflation. However, with expectations of another 50bps cut in repo rate in FY26, the consequent decline in fixed deposit rate will disincentivize HNI/UHNI investors, prompting them to look for potentially high return asset class like AIFs which not just has regulatory oversight but also offers risk diversification and high returns.
