After the tax reduction in the 2025 budget, the RBI has brought good news for the middle class. The Reserve Bank, under the leadership of its new Governor Sanjay Malhotra, has reduced the repo rate by 25 basis points. This will provide some relief to homebuyers. It will particularly help in reducing monthly home loan installments. This decision is likely to encourage new homebuyers to come forward. Experts in the real estate sector believe that the rate cut will increase home loan affordability and play a significant role in boosting housing demand.
RBI’s decision is beneficial for the market…
Focusing on promoting growth while maintaining stable inflation is a welcome move and aligns with the government’s efforts. The 25 basis point reduction in the repo rate, along with the announcements made in the budget to boost consumption, will help increase economic activities and attract direct investments into the real estate sector. By making loans more affordable, it will not only assist new and existing homebuyers but also provide liquidity to developers.
Sameer Jasuja, Founder of PropEquity
EMI will reduce..
The 25 basis point reduction in the repo rate will help lower the EMI for home loan borrowers and make new loans more affordable. Given that the real estate sector has faced some pressure over the past few quarters, this is a welcome move. While the luxury real estate segment may not be significantly impacted, this action will provide immense benefits to affordable and mid-income housing. The decline in urban consumption is concerning, but with this cut, there is a possibility of some recovery in the upcoming quarters.
Garvit Tiwari, Co-founder, Inframantra
Benefit for both..
The RBI’s decision to reduce the repo rate to 6.25% is the first rate cut in five years. This move suggests a growth-friendly shift aimed at sustaining India’s economic momentum. For real estate, the rate cut after such a long time is a significant boost. Lower loan costs will improve housing affordability, especially strengthening the sentiment of buyers in the mid-income and premium housing sectors. Reduced interest rates will lead to an increase in housing demand. The RBI’s decision benefits both homebuyers and developers.
Pradeep Agarwal, Founder of Signature Global
Speed in real estate..
The central bank’s unanimous decision to reduce the repo rate by 25 basis points to 6.25% is a welcome move, as it increases liquidity in the economy, makes credit more accessible, and boosts overall consumption. This follows the previous MPC decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which already infused significant funds into the banking system. Lower interest rates will stimulate housing demand by making home loans more affordable. Along with strengthening market confidence, this will provide the necessary momentum to the real estate sector.
Akash Khurana, President, Krisumi Corporation
