Real estate developers have lauded the Reserve Bank of India’s decision to cut the repo rate by 50 basis points, bringing it down to 5.5%. They see it as a timely move that will reduce home loan interest rates, making property purchases more affordable. The cut is expected to boost end-user demand, revive housing sales, and accelerate project launches. Industry experts believe lower EMIs will enhance consumer sentiment and spending power, benefiting not just real estate but related sectors as well. Overall, the decision is seen as a growth catalyst.
Manoj Gaur, CMD, Gaurs Group, RBI’s decision to reduce the repo rate by 50 bps will add new vigour to the country’s real estate sector. With this the total quantum of reduction, since the beginning of this year, reaches 100 bps, translating into a massive 1% decrease. Not only will it make homeownership affordable and boost buyers’ sentiments but also add new vigour to the economy which in turn will augur well for both residential and commercial realty. This could as well signal the beginning of a new low-interest regime.
Amit Modi, Director, County Group, -No doubt, RBI has given us a reason to cheer. The reduction in repo rate by 50 bps will significantly boost the real estate sector. But its ramification goes wider. The move also signals confidence in the country’s economy, easing inflationary pressures, and a positive outlook for the future. At the same time, RBI has also announced a staggered 100 bps CRR cut, in four equal tranches over the year. As a result, about 2.5 lakh crore rupees will be released to the banking system, which will not only boost consumption but also benefit the residential and commercial realty segments.
Sahil Agarwal, CEO, Nimbus Realty says “The RBI’s 50 bps repo rate cut marks a cumulative reduction of 1% in just six months and will catalyse the real estate sector’s growth. Combined with the phased 100 bps CRR cut, will infuse liquidity into the banking system, lowering borrowing costs and expanding credit availability for homebuyers. For instance, on a Rs. 1 crore home loan (20-year tenure), borrowers can now save up to Rs. 6,000 per month. Moreover, it also underscores RBI’s faith in India’s economic resilience, easing inflation concerns and fostering long-term growth optimism.”
Deepak Kapoor, Director, Gulshan Group, A big news indeed. The decision to reduce the repo rate by 50 bps or 0.5% takes the total decrease in the repo rate by 1% in a short span of 6 months. The move also signals the central bank’s confidence in the growing resilience of the country’s economy which is increasingly exhibiting signs of certainty in the dynamically evolving global economic order. For the real estate sector, it will translate into an increase in new homeownership numbers.
Sandeep Chhillar, Founder and Chairman, Landmark Group , – “The RBI’s decision to lower the repo rate by 50 basis points sends a strong pro-growth signal and undoubtedly benefits the real estate sector. Amidst the positive sentiments prevailing in the real estate sector, the decision will make the home-buying process for first-time homebuyers increasingly accessible. This move is expected to further propel the demand, sustain buyer interest, and create a favorable environment for continued growth across the housing market.”
Dr. Amish Bhutani, MD, Group 108, said that RBI’s third consecutive repo rate cut by 50bps signals continued confidence in India’s economic growth story. This decisive move is set to unlock greater capital inflows, especially into high-impact sectors like real estate. Wherein, the commercial segment stands to benefit the most from easier financing. At a time when the country seeks robust economic growth, this rate cut would act as a timely catalyst, which would help attain the same.
Rajjath Goel, Managing Director, MRG Group , said, “What sets Delhi-NCR apart is its unique blend of aspiration and innovation in the luxury segment. Besides, our vision behind launching MRG Crown Luxury 2.0 is to meet the growing demand for curated, premium homes, and at the same time, underscore our commitment to crafting elegant, future-ready homes. The strong response to our earlier projects reaffirmed the market’s hunger for well-designed, spacious, and exclusive residences. Hence, we are bullish on Delhi-NCR’s potential to lead and shape India’s luxury housing narrative for the next decade.”
Pankaj Jain, Founder and CMD, SPJ Group says, “At a time when the real estate sector is growing exponentially, the RBI bringing the repo rate to 5.5% will give a major boost to the sector. Lower borrowing costs will make home loans more affordable, thereby encouraging more buyers to enter the market. Alongside, the move offers a stronger case for developers to expand in untapped micro-markets. As the demand for premium homes rises, the deduction will pave the way for sustained growth.”
Uddhav Poddar, CMD, Bhumika Group,The 50 bps repo rate cut signals a strong push toward economic strengthening and offers timely relief to the real estate sector, particularly commercial real estate. By lowering borrowing costs, the move enhances capital accessibility, attracts a wider investor base, and supports new avenues of expansion. Besides, this policy adjustment serves as a much-needed counterbalance, likely to accelerate commercial project execution. We remain optimistic about the sector’s growth trajectory and anticipate continued policy support to sustain this positive momentum.
Ankit Kansal, Managing Director 360 Realtors The industry was mulling a rate cut but didn’t expect a slash of 50 basis points. This is indeed a pleasant surprise. With the current rate reduction, we have achieved a 100-basis point correction in 2025. Some of the factors influencing the bold move could be good monsoon, reduction in energy price in international market and an inflation, which is treading in a safe zone of ~ 4%. This can build positive momentum in the industry. While home loans will be affordable, developers can access cheaper credit, entailing a dual positive impact on the sector. Interestingly, with the CRR also being reduced to 3% from 4% earlier, liquidity will further a get a shot in the arm. For a home loan of INR 50 lakhs (20-year period), we can expect a reduction to the tune to ~ INR 3000s in the monthly EMI disbursing. For bigger values such as 1 to 1.5 crs, the reduction can be to the tune to 6,000 – 9,500. This is a substantive value, especially for mid-income households. Interestingly the positive impact will cascade to other sectors as well such as white goods, food retail, apparels, etc. A reduction in EMIs will broaden the overall consumption basket.
Prateek Tiwari, MD, Prateek Group – “By bringing the repo rate to 5.5%, the RBI has infused enthusiasm in the real estate sector. The move will inject greater confidence in the already booming housing segment, as lower interest rates will significantly reduce the cost of borrowing. This, in turn, will encourage developers to come up with new launches, sustaining the market’s growth. Hence, the sector is all set to reap its benefits.”
Kushagr Ansal, Director Ansal Housing, The 50 bps repo rate cut by RBI, along with the shift to a neutral stance, is a welcome move that signals a positive turn for the economy. Lower borrowing costs will not only improve homebuyer sentiment but also accelerate housing demand, especially in the mid and affordable segments. This decision is a strong confidence booster for the real estate sector, and we anticipate a renewed momentum in both residential and commercial investments
Sanjay Sharma, Director, SKA Group said that the third consecutive repo rate cut brings a wave of optimism in the Indian real estate market. 50 bps cut reflects RBI’s clear intent to stimulate economic activity, which will not only give relief to homebuyers but will also boost demand across the real estate sector. Especially when the market is on an upward trajectory, we believe this decision will sustain its momentum.
Neeraj Sharma, Managing Director, Escon Infra Realtors, stated, “The RBI’s decision to cut the repo rate from 6 per cent to 5.5 per cent is a significant move that will pave the way for the real estate sector. The reduction of 50 basis points will fuel much-needed momentum, resulting in lower EMIs for homebuyers and reduced borrowing costs for developers to launch more projects and meet the nation’s housing demand. Therefore, it will not only boost housing demand but also spur overall economic growth and generate large-scale employment.”
Mayank Jain, CEO, KREEVA – “The RBI’s bold move to cut the repo rate by 50 basis points to 5.5% and the CRR by 100 basis points to 3% is a booster for the real estate sector. The reduced borrowing cost will not only strengthen homebuyers’ sentiments but also help in easing the liquidity flow in the market. In light of significant market volatility and real estate witnessing a surge in the investment flow, this proactive approach signals the central bank’s strong commitment to thrust economic momentum and boost investor confidence.”
“The 50 basis points cut will have a twofold impact on real estate. On one hand, it eases borrowing costs for end-users, especially in the mid and upper-mid segments where affordability sensitivity remains high. On the other, it brings down the cost of capital for developers managing ongoing and upcoming projects. But more importantly, in an environment where real estate demand is already firm, this move helps sustain momentum without overheating the market. The key will be transmission speed by lenders and how much of this benefit flows down to the consumer.”, said Ashwinder R. Singh, Chair, CII Real Estate Committee; VC & CEO, BCD Group; Advisor, NAR India
Surender Kaushik, Founder and Managing Director ARIPL, The RBI’s decision to bring the repo rate to 5.5% comes at the right time. The announcement strongly aligns with the real estate sector, as a reduction in home loan rates will appeal to buyers. While developers may seize this opportunity to scale up projects in new growth corridors. Hence, the announcement will add a new vigour to the sector.
Piyush Kansal, Executive Director, Royale Estate Group, said that “The RBI’s decision to cut the repo rate to 5.5% is a well-timed boost for the real estate sector. This move will ease financial pressure on homebuyers and developers alike, prompting more individuals to invest in property purchases and driving demand across the housing sector. We expect this to spur stronger sales activity and foster sustained stability and growth in the market moving forward.”
Sehaj Chawla, Managing Director, TREVOC Group, The 50 bps repo rate cut by the RBI is a welcome step that reinforces the central bank’s pro-growth stance. For the real estate sector, this move is expected to unlock greater housing demand, as lower interest rates significantly reduce the cost of borrowing. At a time when consumer sentiment is gradually strengthening, this could act as a powerful catalyst, encouraging more fence-sitters to take the plunge into property ownership and further energising the sector’s growth.
Viineet Chellani, Founder and CEO, Asset Deals says, ”The RBI’s repo rate cut is a timely and strategic move to strengthen economic stability and revive sectoral growth. This 50 basis points reduction will provide much-needed relief to homebuyers and significantly boost demand across the real estate market. Lower borrowing costs and improved liquidity will enable faster project execution and better financial planning. We believe this rate cut lays a solid foundation for a stronger recovery in real estate as well as the broader economy.
Prakash Mehta, Chairman and Managing Director of Ocus Group said,”The RBI’s 50 basis points repo rate cut demonstrates a strong intent to boost economic activity. For the real estate sector, it’s a timely move that will ease borrowing costs, improve liquidity, and support faster project execution. This step is expected to lift market sentiment and reinforce long-term sectoral growth. It also enhances financial flexibility for developers and signals positive momentum for the overall economy.”
Manit Sethi, Director, Excentia Infra, says, “With the repo rate now cut to 5.5%, the RBI’s bold move delivers a powerful boost to both the economy and the housing market. Developers will benefit from improved liquidity, speeding up project launches and deliveries. With home loan rates likely to fall further, affordability will improve, especially for first-time homebuyers. Together, these factors set the stage for robust growth and a vibrant real estate market in the months ahead.”
Umang Jindal, CEO at Homeland Group, A 50 bps drop in interest rates announced by RBI augurs well for the real estate sector. In effect, it takes the total reduction to 1% in the last six months, which is a huge decrease. Coupled with a staggered CRR cut of 100 bps, it translates into not only low interest rates but also an increase in the total volume of home loans that can be released by the banks. But more than numbers, it also paints a picture of a growing economy and a confident future.
Yash Miglani, MD, Migsun Group– _The 50 basis points cut in the repo rate to 5.5% is a welcome move that will create ripples of positivity across the real estate sector. For homebuyers, this translates into more affordable EMIs and improved access to housing, especially crucial for first-time buyers in the current market. For developers, it eases financing, supports new launches, and improves overall liquidity. This step is not just a financial adjustment it’s a signal of stability and growth that will help build long-term confidence among both buyers and industry stakeholders
The 50bps cut in repo rate will pave the way for increased capital flow into key sectors like real estate. Lower interest rates will offer better access to funds, broader investor appeal, and faster project rollouts. Particularly, at a time when inflation is easing, the move is likely to expedite the sector’s development. Thus, we’re optimistic about the road ahead and the supportive stance of future policy.” says Prateek Mittal, ED, Sushma Group.
Harvinder singh Sikka, Managing Director, Sikka Group, The 50 bps decrease in repo rate after two consecutive reductions of 25 bps was unexpected for the real estate sector. The move while making home ownership cheaper for the buyers will also reduce the interest rates on project financing. But more than sheer numbers, the major impact will be on the market sentiments as the RBI’s announcement also points towards a resilient economy growing from strength to strength.
Sakshee Katiyal, Chairperson, Home & Soul, The RBI’s decision to cut the repo rate to 5.5% delivers a firm boost to both the broader economy and the real estate sector. This move will significantly benefit the luxury housing segment, particularly in Tier 2 and 3 cities, where demand for the residential segment is on the rise and development activity is gaining pace. By improving the market sentiment, the rate cut is set to drive sustained demand across both urban and emerging suburban markets.
Ashwani Kumar, Pyramid Infratech – “The RBI’s move to reduce the repo rate by 50 basis points is a timely and growth-oriented decision that will strengthen buyer sentiment in the real estate market. Lower interest rates will enhance home affordability, especially for first-time buyers, and ease the financial burden on developers. This policy shift is expected to accelerate housing demand and contribute positively to the sector’s recovery and long-term momentum.”
Saurab Saharan, Group Managing Director of HCBS Developments, “The RBI’s decision to reduce the repo rate to 5.5% sends a clear message of economic support and growth continuity. This rate cut will act as a catalyst for the real estate sector by improving affordability for homebuyers and unlocking fresh opportunities for developers. Lower borrowing costs will enhance project feasibility, ease funding challenges, and support timely execution. At a time when market confidence is gradually strengthening, such monetary easing helps maintain momentum, encourages new investments, and sets a steady path toward long-term recovery.”
Nayan Raheja, Director Better Choice Realtors said, The RBI’s move to cut repo rate by 50 bps, and bring it to 5.5%, is greatly appreciated. Considering the global economic outlook, this third consecutive reduction will continue boosting the real estate market. With the Indian economy showing stability, this move will encourage borrowing, prompting more individuals to invest in property purchases and driving demand in the housing sector.
Sunny Katyal, Co-Founder, Investors Clinic, The 50 bps reduction in the repo rate will breathe new life into the real estate market. Amidst the surge in demand for both commercial and residential properties, this reduction is a significant move that will take the sector’s growth to new heights. This will further ease financing costs for developers, thus benefiting ongoing and upcoming projects. Hence, we foresee increased buyer and investor enthusiasm alongside more competitive lending options from financial institutions
Salil Kumar, Director, Marketing and Business Management, CRC Group, RBI’s repo rate adjustments profoundly impact housing affordability and loan repayment terms, and the 50 bps rate cut strengthens this sentiment. At a time when the Indian economy is strengthening, the 1% deduction will maintain the real estate sector’s growth. This will further ease financing costs for developers, thus benefiting ongoing and upcoming projects. Hence, we foresee increased buyer enthusiasm alongside more competitive lending options from financial institutions.
Umesh Rathore, VP Sales & Marketing at VVIP Group, says, We welcome the decision of the RBI to cut down the repo rate by 50 basis points to boost overall housing demand and improve sales performance. In the current economic environment, this reduction is going to provide much-needed relief to both homebuyers and developers due to lower borrowing costs and easing liquidity.
Dr. Vishesh Rawat, Vice President – Head of Marketing, Sales & CRM, M2K Group , says , With repo rate now reduced to 5.5%, the RBI’s bold move provides a much-needed stimulus to both the economy and the housing market. The 1% deduction is expected to give a major boost to homebuyers’ confidence, since they will be able to secure home loans at a lower rate. On the other hand, developers will have the benefit of lower borrowing costs, easing their financing pressures. Amid the growing demand for premium housing, this announcement will definitely accelerate the sector’s growth.
Saurabh Shankar Seth, President Sales & Marketing at AIPL, says “The RBI’s third successive 50bps repo rate cut is a strategic step to stimulate growth, offering a clear boost to the residential real estate market. At a time when the sector is booming, this move enhances confidence among both homebuyers and developers. It also reflects the government’s responsiveness to market dynamics, setting the stage for increased sales momentum.”
