RBI Cuts Repo Rate to 6%, Real Estate Sees Demand Surge

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points, bringing it down to 6%. This marks the second consecutive rate cut and is being seen as a pivotal move by the Indian real estate sector, which anticipates increased housing demand due to more affordable home loans.

With the RBI shifting its monetary stance to ‘accommodative,’ industry leaders expect continued policy support aimed at stimulating economic activity. The lower cost of borrowing is not only likely to boost homebuyer sentiment but also provide developers with easier access to funding, expediting project deliveries.

Industry Leaders Respond:

Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd

Pradeep Aggarwal, Chairman of Signature Global (India) Ltd., noted that the rate cut aligns with a stabilizing inflation outlook and improving macroeconomic indicators. He emphasized that reduced home loan interest rates will improve affordability and accessibility for a wider segment of the population. He also highlighted that developers stand to gain from lower financing costs, helping accelerate new project launches and meet expected demand.

Mr. Aman Sarin

Aman Sarin, CEO of Anant Raj Ltd., said this rate cut will particularly benefit mid and premium housing by enhancing loan eligibility and lowering EMIs. With the RBI now leaning towards only rate holds or cuts, confidence in the housing market is expected to grow further.

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation

Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, expressed optimism that lower interest rates will convert cautious buyers into actual homeowners. He also anticipates that developers will be encouraged to introduce new housing projects, boosting supply alongside rising demand.

Mr. Udit Jain, director, ONE Group Developers

Udit Jain, Director at ONE Group Developers, viewed the RBI’s shift in policy stance as a major step. He stated that with 50 basis points cut so far and stable inflation, additional monetary easing is possible. He believes this trend will favor all segments—from affordable to luxury housing—by making property investment more attractive and financially accessible.

Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd

Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, underscored that lower repo rates reduce capital costs for lenders, enabling them to offer cheaper home loans. This is particularly beneficial for first-time buyers and the middle class, and signals an opportunity to revive consumption and strengthen the economy through increased homeownership.

Overall, the consensus is clear: the RBI’s actions are set to invigorate India’s real estate landscape by making home loans cheaper, improving buyer sentiment, and accelerating both housing demand and supply.