CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: The Reserve Bank of India (RBI) has unanimously cut the repo rate by 25 basis points, bringing it to 5.25 percent. This marks the fourth rate reduction in 2025, totalling a cumulative 125 bps cut since the start of the year. This decisive move comes against a backdrop of easing inflation, stable growth, and an eagerness to boost liquidity and credit flow. For homebuyers, particularly those looking at affordable, mid-income, or even premium housing across NCR and other urban corridors, this signals a fresh wave of affordability. As banks adjust lending rates, borrowers with floating-rate home loans may soon see lower EMIs, reviving demand and giving impetus to property purchases. The softer interest rate environment is thus set to underpin stronger housing demand through the remainder of 2025 and into 2026, a period likely to see many “fence-sitters” finally turning into homeowners.
Real-estate developers welcomed the decision, noting that it could accelerate demand, convert cautious buyers into committed ones, and provide the needed boost to both residential and commercial launches in the coming year.
Sandeep Chhillar, Founder and Chairman, Landmark Group, says, “The RBI bringing the repo rate down by 25 basis points marks a strong pro-growth signal and undoubtedly benefits the real estate sector. With home loan rates likely to fall further, affordability will improve, especially for first-time homebuyers. This move is expected to reignite demand, sustain buyer interest, and create a favourable environment for continued growth across the housing market.”
Umang Jindal, CEO, Homeland Group, says, “The 25 bps rate cut is a welcome breather for the industry, especially at a time when growth is spreading beyond metros. In Tier-II cities, we’re seeing families upgrade to better homes and businesses look for organised commercial spaces. This reduction nudges both trends forward. It lowers borrowing costs, improves sentiment, and makes it easier for developers like us to fast-track mixed-use neighbourhoods where people can live, work, and shop within the same ecosystem. As we head into 2026, Tier-II markets are set to witness stronger absorption, better retail activity, and sustained demand for quality residential projects driven by aspiration and improved affordability.”
Sehaj Chawla, Managing Director, TREVOC Group, says, “The cumulative softening of rates — with the latest 25 bps cut bringing the effective lending environment to 5.25 percent from 6.50 percent last year — marks a total reduction of 1.25 percent, which is a major boost for homebuyers. Lower borrowing costs directly translate into higher purchasing power and faster decision-making. Supported by stable inflation and strong GDP momentum, this move sets the stage for accelerated growth across the real estate sector.”
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