RBI Cuts Repo Rate to 6% Boosting Real Estate Optimism

CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: India’s real estate sector has welcomed the Reserve Bank of India’s latest monetary policy move, which saw the repo rate reduced by 25 basis points to 6%. Industry leaders believe the decision-aimed at boosting economic momentum amid global uncertainties-will improve housing affordability, stimulate investor confidence, and accelerate development, especially in commercial and affordable housing segments.

The rate cut comes at a time when the sector is navigating rising input costs and shifting buyer sentiments. By lowering borrowing costs, the RBI has provided a timely cushion for developers and homebuyers alike, with stakeholders expecting a boost in residential demand, fresh investments, and faster execution of ongoing projects.

Stakeholders believe that the cut, coupled with the RBI’s shift in stance from “neutral” to “accommodative,” will improve housing affordability, uplift investor sentiment, and fast-track development across residential, commercial, and affordable housing segments.

Deepak Kapoor, Director, Gulshan Group, says, “Amidst tariff wars, instability and volatility in the world, the second consecutive rate cut of 25 bps by RBI will push liquidity in the market, increase consumption and provide a boost to the economy ultimately benefitting the real estate sector. With home loans expected to come down, it will lead to a decrease in EMIs and help buyers who are sitting at the fences to go ahead and make new purchases. Most importantly, with two consecutive reductions in the last two months, RBI has shed its cautious stance and provides a glimpse of the things to come.”

Pankaj Jain, Chairman and CMD, SPJ Group, said, “At a time of global economic uncertainties and recent tariff hikes, the RBI’s decision to cut the repo rate by 25 bps for the second consecutive time and bring it to 6% will stimulate the country’s economic activity. In the backdrop of rising demand for luxury housing, it will also add to the momentum in the real estate sector, making home loans more accessible and renewing interest from potential buyers. The move offers a stronger case for developers to expand in untapped micro-markets. Thus, the ripple effect is likely to support both industry recovery and macroeconomic growth.”