Anshuman Magazine, Chairman & CEO, India, CBRE
The RBI’s decision to reduce the repo rate is significant for the economy amid ongoing tariff concerns and global headwinds. This timely action aims to relieve liquidity constraints and boost business confidence. The rate cut is expected to boost investor sentiment, improve financing conditions, and accelerate momentum in demand. Specifically, it is expected to make home loans more affordable and spur growth in the mid-range and affordable housing markets. The RBI’s continued policy support underscores its commitment to balancing economic growth with macroeconomic stability.
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Shrinivas Rao, FRICS, CEO, Vestian
“The repo rate cut of 25 basis points is in line with current market conditions as the headline inflation in February was within the RBI’s tolerance limit due to a sharp decline in food prices. On the other hand, the fear of recession is also looming globally amid trade friction between the USA and its trade partners. This reduction in the repo rate is expected to catalyse domestic consumption, boosting GDP growth. Moreover, the change in stance from ‘Neutral to Accommodative’ points towards easy monetary policy and future rate cuts, leading to a reduction in mortgage rates and a boost to the real estate demand.
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Vimal Nadar, Head of Research at Colliers India
In the first MPC meeting of the fiscal 2025-26, RBI has further reduced the repo rate by 25 bps to 6.0%. The change in stance from “neutral” to “accommodative” is indicative of a growth supportive monetary policy and this becomes more critical in the backdrop of heightened uncertainty in global markets following the levy of reciprocals tariffs by the US. Although the intensity and impact of ongoing tariff escalations needs to be fully ascertained, RBI remains optimistic on domestic growth outlook and projects the GDP to grow by 6.5% in the fiscal 2025-26. Recent easing of inflation is likely to increase disposable income which in turn has the potential to boost domestic consumption.
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Consecutive reduction in benchmark lending rates will boost homebuyers’ sentiments and resultantly improve housing demand particularly in affordable and middle-income segments. Real estate developers across segments also stand to benefit from likely lowering of financing costs. Overall demand and real estate growth is likely to be on the upswing, given the anticipation of further easing in monetary policy. However, global headwinds and trade frictions will remain a key monitorable for all economic sectors including real estate.
RBI has also proposed securitization of stressed assets through a market-based mechanism, in addition to the Asset Restructuring Company (ARC) route. Reduction in borrowing costs coupled with alternate resolution mechanism for stressed assets is likely to benefit real estate stakeholders in the near-mid-term. This is expected to provide significant relief to cash strapped developers and several stalled projects due to financial constraints.
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Amit Goyal, MD, India Sotheby’s International Realty
The RBI’s 0.25% repo rate cut is a stabilising and much-needed move at a time when global economic turmoil poses challenges. By ensuring liquidity and keeping borrowing costs attractive, this decision by the central bank, will bolster corporate confidence and investments. For India’s housing sector, if the rate cut is passed on as a benefit on home loans, it will support the demand momentum, and help the real estate industry ride over this period of uncertainty.
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Piyush Bothra, Co-Founder and CFO, Square Yards
The RBI’s second consecutive repo rate cut, bringing it down by 25 basis points to 6%, is a timely and encouraging move for the real estate sector. For end-users, the lower rate translates to more affordable EMIs, making home ownership more achievable at a time when property values are inching upward. Moreover, this further strengthens liquidity in the system, enabling developers to secure funding and accelerate new project rollouts. As inflation remains under control, this rate cut could serve as a stabilizing force amid broader global uncertainties, reinforcing stakeholder confidence in residential real estate.
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Amit Prakash Singh, Co-Founder & Chief Business Officer, Urban Money
The RBI’s decision to cut the repo rate by 25 basis points to 6% is a strong, forward-looking signal for the broader credit ecosystem. For borrowers across segments—be it home loans, personal loans, business loans, or loans against property—this translates into more affordable access to capital and lower EMIs. From a lender’s standpoint, enhanced liquidity and lower cost of funds create an environment where institutions can expand credit offerings more aggressively, target new customer segments, and fine-tune risk-based pricing models. At a time of rising global uncertainties, this move will boost credit demand, improve affordability, and enhance liquidity across the lending ecosystem.
