RBI’s Second Consecutive Rate Cut Brings Hope for Homebuyers, and Developers
- Anmol Yadav
- Apr 9
- 6 min read
"The RBI’s decision to reduce the repo rate by 25 basis points to 6% comes as a welcome and timely move for the Indian economy. At a time when global headwinds and tariff concerns loom large, the accommodative stance by the MPC will serve as a much-needed catalyst to revive consumption and investment cycles. For the real estate sector, this signals increased affordability for homebuyers and improved liquidity conditions for developers. It will directly impact housing demand, particularly in the affordable and mid-income segments, and will boost sentiments in the real estate sector. This policy stance will further encourage transparency and trust, essential for sustainable sectoral growth."
"The recent repo rate cut by the RBI signals a proactive stance to stimulate growth and investment, particularly in the real estate sector. Reduced lending rates are expected to enhance home affordability, encouraging aspiring buyers to take that crucial step towards homeownership. For developers, improved access to capital will aid project execution and timely delivery. However, the real impact of this move will hinge on how swiftly and effectively commercial banks pass on the benefits to end consumers."
"The RBI’s policy move is a strong signal of its commitment to support growth while leveraging the benign inflationary backdrop. It comes at an opportune moment, especially as we look to maintain the momentum in home sales post Gudi Padwa. For the real estate sector, a reduction in interest rates enhances affordability, which is the cornerstone of sales revival. Especially in metro cities like Mumbai, this policy stance will help attract fence-sitters and first-time buyers. Lower interest rates will not only encourage new buyers but also aid existing homeowners in managing EMIs better."
"A rate cut in a controlled inflation environment is a strategic push towards economic revival. Lower interest rates make home loans more attractive and affordable, especially in metros like Mumbai where ticket sizes are higher. This move will act as a catalyst to improve buyer sentiment, accelerate decision-making, and will go a long way in supporting the real estate sector’s momentum, particularly for end-user driven and premium housing segments. It also reaffirms the RBI’s supportive approach towards economic revival through a healthy credit ecosystem.”
"The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6% is a welcome step that will support the real estate sector, especially affordable housing. Lower interest rates mean home loans will become cheaper, making it easier for more people to buy homes. This will also help increase demand and give a much-needed push to the housing market.
At the same time, it is imperative that lending institutions pass on the benefits of this rate cut to homebuyers without delay. This will help reduce their financial burden and speed up the home-buying process, encouraging more families to take the step towards homeownership.
The government’s move to add ₹15,000 crore to the SWAMIH fund in the recent budget reflects its strong commitment to completing stalled affordable and mid-income housing projects. This will bring relief to homebuyers who have been waiting for their homes and help restore confidence in the market.
Additionally, the budget’s income tax relief measures will increase disposable income, enabling more middle-class families to consider buying a home. Together, the RBI’s policy decision and the government’s budget announcements are setting the stage for renewed growth in the real estate sector. These steps will benefit both homebuyers and developers, and strengthen the sector’s contribution to the country’s economy."
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.
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.
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.
Mr. 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.
Mr. Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com
“As the global economy braces to withstand the impact of recently announced US trade tariffs, the Reserve Bank of India has taken a proactive step to support domestic growth by implementing a 25-basis point reduction in the repo rate — its second such cut following a similar move in February. At a time when downside risks to growth persist —India’s GDP is projected to have grown by 6.5% in fiscal year 2025, marking the slowest pace in five years — this prudent decision by the banking regulator is both commendable and reassuring for investors.
For the housing sector, the rate cut holds the potential to improve affordability and renew homebuyer enthusiasm, particularly in the backdrop of steadily rising prices. However, the true impact will hinge on the swift and effective transmission of this cut by banks and lending institutions. It is imperative that lenders pass on the benefits in the form of lower interest rates—helping reduce EMIs and making the aspiration of homeownership more attainable for millions of Indians.”
Mr 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.
Mr 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.
Mr.Ashwin N. Sheth, Chairman and Managing Director, Ashwin Sheth Group
With the second consecutive repo rate cut, we foresee further reduction in home loan rates. This should provide some relief to the industry which is at an inflection point with multiple projects being rolled out and supply outpacing demand in many areas. The premium housing segment, which is a core focus to us, stands to gain out of the development since the reduced borrowing costs should drive home-buyers to up their bet on real estate as a assuring investment class amidst all the global economic uncertainties
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