Mr. Pradeep Aggarwal, Signature Global (India) Ltd.’s founder and chairman.
In an effort to maintain India’s economic momentum, the RBI decided to lower the repo rate to 6.25%, its first decrease in over five years. With a 6.7% GDP growth forecast for FY26, this action will improve liquidity, attract investments, and boost demand in several important industries.
A rate reduction after such a long time is a big boost for real estate. Reduced borrowing rates will increase the affordability of homes and boost buyer confidence, especially in the mid-income and luxury property markets. In the past, lower borrowing rates have increased demand for homes, which has benefited both developers and purchasers. Better access to financing will also help developers get funds for project implementation, guaranteeing consistent supply and on-time delivery.
The real estate sector, contributing nearly 7% to India’s GDP and projected to reach 13% by 2030, will gain further momentum as urbanization accelerates and infrastructure investments expand. This move will also positively impact allied industries such as cement, steel, and construction materials, creating a multiplier effect on employment and overall economic activity. With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.”
Mr. Akash Khurana, Krisumi Corporation’s president and chief executive officer
The unanimous decision by the Central Bank to lower the repo rate by 25 basis points to 6.25 percent is undoubtedly a positive step that will improve economic liquidity, increase loan availability, and increase total consumption. Significant funds have already been poured into the banking system as a result of the last MPC’s decision to lower the Cash Reserve Ratio (CRR) by 50 basis points. Reduced interest rates are anticipated to boost market confidence, increase the affordability of house loans, and provide the real estate industry much-needed impetus, all of which will contribute to economic expansion.
Sahil Agarwal, Nimbus Group CEO
We applaud the RBI’s move to lower the repo rate. At today’s monetary policy meeting, there were high hopes for a small rate drop of 25 basis points, and the RBI has met those expectations. The need to promote GDP growth, the fact that inflation has been in a manageable range for the last few quarters, and the current tight liquidity circumstances all played a role in the decision. The justification for a rate cut was further strengthened by developments in financial markets and international trade dynamics.
In addition to increasing liquidity, the repo rate drop will raise purchasing power and consumption, which will ultimately propel economic expansion. Since lower home loan interest rates make homeownership more accessible, lower borrowing costs are expected to provide the real estate industry a big boost. This move is expected to encourage higher demand for housing, benefiting both end-users and investors alike.
Mr. Udit Jain, OneGroup Director
Homebuyers in the cheap and mid-segment segments would especially appreciate the 25 basis point reduction in the repo rate. Since these housing categories are extremely cost-sensitive, more consumers would surely decide to become homeowners if the EMI burden is reduced.
Additionally, the rate cut is expected to provide a strong boost to housing demand in Tier II and Tier III cities, where affordability plays a crucial role in purchasing decisions. Combined with other favorable factors—such as increased savings from revised tax slabs in Budget 2025-26 and the upcoming implementation of the 8th Pay Commission—this move sets the stage for sustained growth in the real estate sector. The combined impact of these measures will give a much-needed boost to industries linked to housing, enhance home loan eligibility, improve affordability, and drive higher demand for housing in the near future.