India’s real estate industry hailed the Reserve Bank of India’s decision to reduce the key interest rate by 25 basis points on Friday, saying this rate cut will have a positive impact on the overall sector, making home loans more affordable and increasing demand for housing.
“With lower interest rates, we expect to see increased sales, improved liquidity, and a reduction in the inventory of unsold homes. This, in turn, will encourage developers to launch new projects, creating new opportunities for homebuyers and investors,” said G Hari Babu, National President of NAREDCO.
“In addition, I believe that this move will have a positive impact on the affordable housing segment, which is a priority area for the government. With lower interest rates, more homebuyers will be able to afford homes, leading to increased sales and improved liquidity for developers. This, in turn, will encourage developers to launch more affordable housing projects, addressing the huge demand-supply gap in this segment,” he added.
Also Read: RBI Cuts Repo Rate by 25 bps: What should homebuyers do now?
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said, “For real estate, a rate cut after such a long period is a significant boost. Lower borrowing costs will improve home affordability, strengthening buyer sentiment, particularly in the mid-income and premium housing segments. Historically, reduced interest rates have triggered an upswing in housing demand, benefiting both homebuyers and developers. Additionally, improved credit access will support developers in securing funding for project execution, ensuring steady supply and timely deliveries.”
With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.
Akash Khurana, President and CEO, Krisumi Corporation, said, “The Central Bank’s unanimous decision to cut the repo rate by 25 bps is definitely a welcome move that will enhance liquidity in the economy, making credit more accessible and boosting overall consumption. This follows the last MPC decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which has already injected significant funds into the banking system. Lower interest rates are expected to stimulate housing demand by making home loans more affordable, strengthen market confidence, and provide much-needed momentum to the real estate sector, ultimately supporting economic growth.”
Here’s what India’s leading developers said about the RBI decision to cut the repo rate:
Rajjath Goel, Managing Director, MRG Group: “The RBI decision to cut the repo rate by 25 bps comes as a timely boost for the real estate sector. Lower interest rates translate to more favorable financing options, even for high-ticket properties. Combined with the increased disposable income from recent tax reforms in the Budget, this is an opportune moment for the sector, and we expect a sustained growth in sales this year.”
Uddhav poddar, CMD, Bhumika Group: “A rate cut after five years is definitely a big moment for the country and indicates the direction of the RBI. This will raise the spirit of the entire economy and the real estate sector in specific. On the one hand, it will make purchasing properties cheaper. It will also encourage consumption. But more than everything, this step will boost market sentiments and lead us to hope for more such rate cuts in the future.”
Manik Malik, CFO, BPTP: “This change in the policy rate is expected to ease borrowing costs, benefiting both developers and homebuyers. Developers will see financial relief through lower borrowing rates, enabling smoother project execution and keeping construction costs manageable. For homebuyers, this reduction in the repo rate translates into lower house loan EMIs, making homeownership more accessible. This could reignite buyer sentiment and boost demand in both the residential and commercial real estate markets. Overall, this timely intervention will support growth in the real estate sector, enhance investor confidence, and help maintain stability in property values.”
Yashank Wason, Managing Director, Royal Green Realty: “The rate cut will benefit homebuyers, since there will be a reduction in interest rates on home loans, leading to affordability. Loan EMIs will also reduce, which will be beneficial to refinance existing home loans.”
Aman Trehan, Executive Director, Trehan Iris: “The RBI decision to reduce the repo rate will benefit homebuyers, especially first-time buyers and those upgrading, by improving affordability and confidence in the market. Moreover, it will also support demand for premium and luxury housing. Overall, this move will drive growth, strengthen the real estate sector’s contribution to the economy, and support steady development across regions.”
Ashish Sharma, AVP Operations, Brahma Group: “Lower EMI costs will make homeownership more accessible, driving renewed interest in the residential segment. Moreover, businesses will benefit from easier financing, fueling demand for premium office spaces. The reduction in borrowing costs will create a more favorable investment environment, reinforcing confidence among buyers and investors. Furthermore, this policy shift is set to accelerate growth and strengthen Gurgaon’s position as a key hub for real estate development and opportunities.”
Aman Sharma, Managing Director, Aarize Group: “This reduction is expected to lower borrowing costs, making loans more affordable for consumers and businesses alike. Such a measure not only aims to boost spending and investment but also provides relief to existing borrowers through reduced EMIs. It’s a welcome step towards fostering a more robust economic environment.”
Sachin Chopda, Managing Director, Pushpam Group: “This rate cut will help the real estate sector in mid and affordable housing segments. It is expected to enhance market liquidity, thereby improving buyer sentiment and potentially increasing demand across all residential segments. Additionally, the central bank’s proactive approach to liquidity management and inflation control will create a supportive environment for ongoing investments in the real estate sector. This will enable investors and developers to plan with greater assurance and foresight. Consequently, a more favorable market dynamic is anticipated, fostering sustained demand and growth opportunities for both developers and buyers as the sector continues its recovery.”
Gurpal Singh Chawla, Managing Director, TREVOC: “The RBI’s first rate cut in nearly five years is a pivotal move. Cheaper borrowing costs, combined with recent tax concessions, create a strong tailwind for real estate. This shift isn’t just about affordability—it’s about renewed confidence in housing investments and liquidity flow.”
Sandeep Chhillar, Founder and Chairman, Landmark Group: “The RBI’s proactive rate cut, coupled with favorable announcements in Budget 2025, sets a positive tone for the real estate sector. Reduced interest rates will lower EMIs for first-time homebuyers, making homes more accessible. We welcome this decision by the government which will drive long-term growth across various segments.”
Ashwani Kumar of Pyramid Infratech: “Amidst the surge in demand for high-end properties, a reduction in the repo rate is a significant move that will take the sector’s growth to new heights. This decision reflects the government’s responsiveness to buyer sentiments, setting the stage for increased sales and market activity. We anticipate sustained interest from buyers, while financial institutions and banks are likely to introduce more attractive lending options, further boosting the sector’s momentum.”
Saransh Trehan, Managing Director, Trehan Group: “Lower interest rates on home loans will make homeownership more affordable, empowering buyers with greater purchasing power. This move is expected to enhance market sentiment, encouraging both first-time buyers and investors to take advantage of the reduced borrowing costs. The rate cut will positively impact demand across segments, from affordable to premium housing, leading to increased sales and sectoral growth. Additionally, improved liquidity in the market will further strengthen real estate as a stable investment avenue. This rate cut will undoubtedly accelerate momentum in the housing sector, fostering long-term economic growth and stability.”
Vikas Garg, Joint Managing Director, Ganga Realty: “With reduced home loan interest rates, aspiring homeowners will find it easier to invest in their dream homes, boosting demand across segments. This step aligns perfectly with the vision of making housing more affordable and accessible. Additionally, it will provide momentum to the real estate market, encouraging both end-users and investors to take advantage of the lower borrowing costs. We expect a surge in inquiries and conversions, reinforcing positive sentiment in the industry.”