RBI Monetary Policy Meeting: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has made a big announcement today by reducing the repo rate by 25 basis points. After this the repo rate has reduced to 5.25 percent. Those people who are preparing to buy their house will get the most benefit from this decision, because now the home loan EMI will reduce. The real estate world is watching this move with great enthusiasm and it is expected that there will be a significant increase in both purchases and investments in the coming months. Experts say that this decision will strengthen confidence in the market, speed up the completion of incomplete projects and improve capital flow in the economy. However, considering the rising cost of construction materials, the possibility of fall in prices is considered limited, but overall this step is being considered positive for the industry.
Dinesh Gupta, President, CREDAI Western UP, said, “The reduction in repo rate by 25 basis points is a very welcome step for the real estate sector. This decision will reduce EMIs and make the home buying process more convenient for common families. We are confident that we will see a huge surge in residential demand in the coming months. This decision will instill new confidence and positivity in the entire industry and provide the next growth momentum to real estate.”
Big boost for real estate system
Nirala World CMD Suresh Garg said that due to the reduction in interest rates, buying a house will be easier than before because it strengthens the paying capacity of the buyers. Now people will not delay in taking decisions, which will accelerate both sales and new project launches. This step is a big boost not only for the buyers but for the entire real estate system and this will make the market look more active in the times to come.
Dinesh Jain, Director of Exotica Housing, said, “This decision is a relief for those families who were postponing the decision to buy a house due to EMI concerns. Lower interest rates will improve affordability and increase the confidence of buyers. This will have a positive impact on both sales and delivery. This step will prove to be extremely important in providing both stability and growth to the market.”
RG Group Director Himanshu Garg said that we see the repo rate cut as a big change in the real estate industry. This will boost demand in both residential and investment categories as lower EMIs increase purchasing and investment affordability. This is most beneficial for first time home buyers. This step will also give a new direction to the pace of the economy and will strengthen the market.
According to Pankaj Kumar Jain, Director, KW Group, the repo rate cut by 25 basis points by the RBI is a timely and balanced step, which will help in reducing funding costs and stimulating demand for homes, especially in the middle-income group. Lower interest rates improve affordability for home buyers and create a more favorable environment for new project investments, which will further strengthen the growth story of the real estate sector across India.
Colonel (Retd) Ashwini Nagpal, COO of Diligent Builders, said that this decision will increase positivity in the real estate market and will give impetus to the projects under construction. This will strengthen end-user confidence and improve the shopping environment. This step is going to make the future of the industry secure and stable.
Vision Business Park promoter Vaibhav Aggarwal said that all types of real estate will benefit from this deduction, especially the commercial sector. Due to availability of cheap finance, both sales and lease of office and commercial spaces will increase. The business environment will improve and market activities will increase. There will be a big jump in demand for commercial space in the coming months.
According to Gaurav Sobti, Founder of HomeGram, the reduction in interest rates will speed up the home buying process and will also have a positive impact on digital real estate platforms. Reduction in EMI will increase the confidence of buyers and there will be a significant increase in sales. We expect that housing demand may reach unprecedented levels in the next few months. This step will also strengthen the confidence of investors.
Shailendra Sharma, Chairman, Renox Group, said, “This decision of RBI has brought a big opportunity for the real estate sector. The already strong demand will now intensify further. This reduction will provide a big incentive to home buyers in both medium and luxury categories and will see a significant increase in sales.
Vestian’s Srinivas Rao said that the rate cut of 0.25 percent clearly indicates that the objective of monetary policy is now to strengthen growth, because inflation is currently under control. By reducing the cost of borrowing, the pace of project construction will increase and consumer demand will also increase significantly. Lower funding costs and better leasing activity in commercial real estate will accelerate new developments and occupier expansion. This will also increase clarity for long-term investments and strengthen credit expansion. Capital-intensive sectors and the housing segment will benefit most from access to affordable finance. This step supports growth momentum while strengthening economic stability.
According to Piyush Bothra, co-founder and CFO of Square Yards, the repo rate cut of 0.25 percent is a bold and welcome decision amid global uncertainties. Despite the falling rupee and other pressures, this step of RBI shows the strength of the Indian economy and its ability to stand apart from the global environment. This reduction is a big boost for the real estate sector, as it will increase the affordability of homes, especially at a time when buying sentiment is already strong. Inflation is under control, growth projections are improving and demand remains strong due to reforms. In such a situation, this step further increases the impact of this year’s previous rate cut. Low home loan rates, especially during the festive season, will drive demand from mid-income and first-time home buyers. This step will also strengthen credit conditions and market sentiment for developers.
Vimal Nadar, National Director and Head (Research), Colliers India, said that after a short pause, RBI has again cut the repo rate by 0.25 percent and the repo rate has come down to 5.25%, which is the lowest in three years. This cut and continuation of neutral stance is an indication that the Indian economy remains strong despite global uncertainties and weak rupee. The GDP estimate for FY 2025-26 has been increased from 6.8% to 7.3%, in which domestic demand and private consumption play an important role. At the same time, the estimate of CPI inflation at 2% this financial year shows that the price pressure is very low. Real estate, especially the residential segment, may gain further momentum with this reduction. Following the recent festive season and GST relief on construction materials, lower interest rates will strengthen both home affordability and buyer confidence. Rising income and easy loans can also boost housing sales in the coming months.
India Sotheby’s International Realty Managing Director Amit Goyal said that RBI’s 0.25 percent repo cut has come at the right time. Real estate is a capital-intensive sector, and affordable financing is a big relief for the industry after construction costs remained high for many years. Low interest rates boost confidence of both home buyers and institutional investors, which will support demand, transactions and price stability.
After the economy recorded a strong growth of 8.2% in the second quarter, this rate cut is like another positive wind, which further strengthens liquidity and sentiment.
According to Kunal Seth, Director of Shalimar Corp, becoming a home owner has become easier due to low borrowing costs. This rate cut provides new opportunities for families to invest in their future and helps the real estate sector flourish
Founder and Chairman of Amravati Group, Ravi Prakash Pandey said that low interest rates add new life to housing demand. More buyers, stronger confidence and a new wave of growth for both developers and communities.
Ashish Bhutani, CEO of Bhutani Group, said that the repo rate cut proves to be a strong growth catalyst for the real estate sector. Low interest rates directly increase purchasing power of customers, strengthen last line customers and open new investment opportunities across segments. This step will give a positive direction to the sentiments of the people towards the market and will accelerate the growth in every sector.
