Mr Samir Jasuja, Founder & CEO, PropEquity, NSE-listed data analytics firm PropEquity:
The RBI’s 50 bps cut in repo rate, following the 25bps cut each in February and April, along with 100bps reduction in CRR is bold, timely and progressive given India’s growth momentum. This will enhance liquidity and spur credit growth as India’s GDP growth rose to a four-quarter high of 7.4% in Q4FY25, placing India as the fastest growing major economy. With retail inflation in the comfort zone, a deep cut in rate and liquidity measure will spur consumption and accelerate India’s growth.
Both these measures will ensure faster transmission of rate cut so that the new homebuyers are cushioned from the impact of rising housing prices and affordable housing segment also gets a fillip as even a slight reduction in home loan rates impacts buying decisions.
According to PropEquity, housing sales in India’s top 9 cities, has been witnessing a Y-o-Y decline, falling from 3% growth Y-o-Y in Q1 2024 to (-)20% in Q1 2025. The PropEquity data also suggests that supply of homes in affordable and mid-income category (Rs 1 crore and below) fell by 36% in last two years (2022-24) in top 9 cities. In contrast, the supply of homes priced Rs 1 crore and above have risen by 48% in the last two years.
Mr. Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF):
The three consecutive reductions (100bps) in repo rate and 100 bps cut in CRR are a welcome move by RBI to spur consumption demand and economic growth in view of the global uncertainties, growth acceleration and decline in inflation. However, with expectations of further cuts in repo rate in FY26, the consequent decline in fixed deposit rates, currently under 7.5%, will disincentivize savers and HNI/UHNI investors, prompting them to look for potentially high return asset class like Alternative Investment Funds (AIFs) which not just has regulatory oversight but also offers risk diversification and high returns.
Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors:
India’s economy is poised for a strong growth in FY26. The RBI’s three consecutive cuts in repo rate of 100bps to 5.5% and 100 bps reduction in CRR aligns with its vision to support the growth momentum amidst declining inflation by making loans affordable and enhancing liquidity. India’s housing sector, though, have shown some weaknesses for the past couple of quarters, RBI’s decision on repo rate cut and CRR reduction will help maintain the momentum in the housing sector.
