1. Amit Goyal, Managing Direct, India Sotheby’s International Realty
The RBI’s 0.25% rate cut after five long years—is the much-needed oxygen for the Indian economy, more particularly for the real estate sector.
It lightens EMIs, boosts investments, and signals a pro-growth stance. Coupled with income tax breaks for incomes up to ₹12 lakh in the Union Budget, it widens the path to homeownership for many aspiring buyers.2. Vimal Nadar, Head of Research at Colliers India
In line with expectations, RBI in its first MPC meeting after the Budget, has decided to reduce the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years, following a prolonged cycle of rate hikes and stability triggered by global uncertainties. This comes against the backdrop of easing inflation and moderation in growth prospects. The Central Bank, however, maintains confidence in the robustness of the domestic economy and projects the GDP growth rate at 6.7% in FY 2025-26. As housing demand has begun to stabilize after witnessing record sales in the last 2-3 years, this rate cut comes at an opportune time and will have a significant bearing on boosting homebuyer sentiments. The rate cut along with the recent budgetary announcements related to the creation of the Urban Challenge Fund and tax reliefs under the new regime, are likely to stimulate urban growth and enhance domestic consumption. Higher disposable income and lowering of financing costs stand to benefit homebuyers and developers alike. Furthermore, the recent allocation of INR 15,000 Crores for the SWAMIH II fund is likely to expedite the completion of stressed projects, boosting liquidity and spurring home-buying sentiments. Overall, evident tailwinds should boost real estate demand across asset classes in upcoming quarters.
3) Shrinivas Rao, FRICS, CEO of Vestian,
“The RBI’s 25 bps reduction in the repo rate was anticipated, given the slowdown in GDP growth to 5.4% in the second quarter of FY’25, marking the slowest expansion over seven consecutive quarters. This rate cut, the first in nearly five years, aims to bolster market liquidity. It’s likely to buoy the real estate sector with expectations of major banks trimming mortgage rates. However, it is also expected to exert downward pressure on rupee value in international markets, barring foreign investments.”
4) Mr Piyush Bothra, Co-Founder and CFO, Square Yards
“The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a welcome move for the real estate market. This will lower borrowing costs for home buyers, making home loans more accessible and improving buyer sentiment. Additionally, it could enhance liquidity in the banking system, easing access to financing for developers. Combined with recent tax reforms, stable inflation projections, and sustained economic growth, it will act as a strong tailwind for the residential real estate sector. Needless to say “achche din” for real estate will continue for a long time”