RBI’s Second Consecutive Repo Rate Cut to 6% Spurs Optimism Across Real Estate Sector

9th April 2025: 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.

Industry Speaks

Mr. CS Setty, Chairman, SBI :The RBI rate cut coupled with the revision in stance to accommodative was a swift, timely move and a forward guidance to the market to stay supportive against evolving global uncertainties. The revision of stance to accommodation will cushion the secondary impact of tariffs on domestic economy. With inflation under check, growth imperatives will take precedence in FY26.

On the regulation side market-based securitization framework for stressed assets, review of policy on gold lending and non-fund-based facility are timely. Widening of co-lending framework gives wider choices to all parties concerned”

Manoj Gaur, CMD, Gaurs Group and Chairman, CREDAI National says, Given the easing inflation and the global trade concerns mainly due to USA’s reciprocal tariff, the RBI’s decision to reduce the repo rate by 25 bps will have a positive impact on the real estate sector. Another highlight of the MPC meeting was a shift in RBI’s stance from neutral to accommodative. As this move commits the central bank to increase the money supply, it will boost India’s economy and promote consumption, which in turn will add to the real estate sector’s growth trajectory.

Amit Modi, Director, County Group, says, Indeed, the 25 bps reduction in the repo rate is good news. However, the change in the RBI’s stance from neutral to accommodative, which has resulted in over $80 billion liquidity infusion plus a first five-year rate cut in February, is even better news. Add to it the easing inflationary concerns and lowering of oil prices. In its entirety, the move will bolster consumption, boost growth and benefit the real estate sector. Further, given this backdrop, we look forward to a further decrease in the repo rate in the next MPC meeting.

Sandeep Chhillar, Founder and Chairman, Landmark Group, says “The RBI’s second subsequent rate cut sets a positive tone for the real estate sector. With home loans expected to be reduced, the decision will make the home-buying process for first-time homebuyers increasingly accessible. We anticipate sustained interest from buyers and the sector shall continue to reap the benefits.”

Sanjay Sharma, Director, SKA Group, said, The back-to-back 25 bps repo rate cut reflects a clear intent to stimulate economic activity, with positive implications for the real estate sector. Lower interest rates will enhance home loan affordability, attract more homebuyers, and support demand across segments. This is particularly impactful at a time when inflationary pressures are not much of a concern. We remain optimistic about continued policy support to keep the housing market on an upward trajectory.

Kushagr Ansal, Director Ansal Housing stated that the RBI’s 25 basis point repo rate cut is a welcome move that will boost homebuyer sentiment, enhance affordability, and further accelerate growth in India’s real estate sector.

“The rate cut was anticipated and offers marginal support to real estate sentiment. But in a volatile global environment—with trade tensions resurfacing—the true impact will depend on how input costs and capital flows evolve over the next few months. For now, it’s a stabilising move, not a game-changer,” said Ashwinder R Singh, Chairman CII Committee on Real Estate & Vice Chairman, BCD Group.

Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group, says _”A Reduction in repo rate by 25bps and bringing it to 6%; RBI’s decision was largely on the expected lines. Amid high market volatility and recent tariff hikes, this move will positively impact the country’s economy, further affecting the real estate market, too. Considering the market dynamics, this reduction would reduce home loan rates, urging more first-time buyers to invest in new property and encouraging developers to lead new projects and expand their developments in emerging areas. This will definitely provide a lift to the real estate market and support broader economic growth.”

Uddhav Poddar, CMD, Bhumika Group, stated, The second consecutive 25 bps cut in the repo rate underscores the RBI’s commitment to fueling economic growth, offering a timely lift to the real estate sector, especially commercial real estate. Lower borrowing costs will ease access to capital, broaden the investor pool, and open new avenues for expansion. In light of recent tariff hikes, this move comes as a welcome counterbalance, likely to accelerate commercial project development. We remain confident in the sector’s upward trajectory and look forward to sustained policy support that reinforces this positive momentum.

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.”

Rajjath Goel, MD, MRG Group, says, The RBI’s decision to bring the repo rate to 6% comes as a timely boost for the real estate sector. Lower interest rates translate to more favorable financing options, even for high-ticket properties. For the housing sector, it translates into lower borrowing costs and renewed buyer interest, especially from first-time homeowners. We see this announcement as a positive push toward broader recovery in real estate and the economy at large.

Harinder Singh Hora, Founder Chairman, Reach Group says, “The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6% comes as a timely and strategic boost for the real estate sector. Lower interest rates are expected to enhance credit affordability, continuity of  demand for retail loans and encouraging business expansion and consumer spending. This monetary easing is likely to translate into increased leasing activity and could certianly help in new project launches, reflecting renewed investor interest and stronger occupier confidence across key markets.”

Gurpal Singh Chawla, Managing Director, TREVOC, stated, “We welcome the RBI’s decision to reduce the repo rate by another 25 basis points, marking the second consecutive cut in the last two months. While February’s reduction didn’t translate into lower lending rates across the board, we are optimistic that this move will encourage banks to pass on the benefits to homebuyers.

With inflation well within target and global economic uncertainties necessitating stronger domestic liquidity, the RBI’s move is timely. A cumulative 50 bps cut so far could provide much-needed momentum to housing demand and support sustained growth across the real estate sector.”

Prateek Tiwari, Managing Director, Prateek Group says, “Following the rate cut by 25bps in February, RBI announcing another rate cut to 6% will not only boost the economy but also impact the realty sector significantly. Reduced interest rates will ease buyers’ financial strains, boosting consumption in the sector. This, in turn, will encourage developers to come up with new launches, sustaining the market’s growth.”

Mr. Prateek Mittal, ED, Sushma Group, said, “With the second consecutive 25 basis point reduction in repo rate, the RBI is paving 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 inflationary pressures are not much of a concern, 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.”

Dr. Amish Bhutani, Managing Director, Group 108, said, The RBI’s successive repo rate cut by 25bps is a strong endorsement of India’s growth trajectory. The move will pave the way for increased capital flow into key sectors like real estate. The commercial segment, in particular, stands to gain from improved financial conditions, just as it navigates cost pressures from recent tariff increases. The easier finance due to rate cut would encourage businesses to expand and invest in Office & retail spaces.

Neeraj Sharma, Managing Director, Escon Infra Realtors, says, We welcome the RBI’s decision to cut the repo rate. Real estate is driven by buyer sentiment, and such monetary relief makes a big difference. A rate cut signals policy stability and builds trust among homebuyers. With loan interest rates coming down, buying a home becomes easier, especially for first-time buyers who are careful about monthly expenses.

Manit Sethi, Director of Excentia Infra, stated that the repo rate cut is a positive sign for the luxury real estate segment. Lower interest rates will benefit customers looking to buy high-end properties and make it easier for them to make investment decisions. This will make homeownership more feasible and encourage developers to expand their footprints in these high-potential regions.

Prakash Mehta, Chairman and Managing Director of Ocus Group says, The RBI’s second consecutive 25 basis points cut, bringing the repo rate down to 6%, clearly signals its commitment to driving economic growth, and it couldn’t have come at a better time for the commercial real estate sector. Lower capital costs will unlock new investment opportunities and support faster project rollouts. In an environment marked by global uncertainty and rising input costs, this move offers much-needed relief and sets the stage for investors and occupiers to accelerate their expansion plans with renewed confidence.”

Harsh Gupta, CEO of Sundream Group, says, The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 6% marks the second consecutive cut this year, underscoring its commitment to stimulating economic growth amid global trade tensions. This move is expected to lower borrowing costs, providing a favorable environment for sectors like real estate to thrive. By making credit more affordable, it encourages investment and development, potentially leading to increased activity and stability within the industry.

Viineet Chellani, Founder and CEO, Asset Deals, says, The RBI’s decision to cut the repo rate to 6% is a much-needed step in the right direction,” said a real estate consultant. “It’s likely to bring relief to homebuyers, especially in the affordable and mid-income segments, as lower EMIs will make homeownership more accessible. Reduced interest rates not only ease the financial burden but also boost confidence among prospective buyers who were waiting for the right time. We expect this move to spark renewed interest in the housing market and positively impact demand in the coming months.

Ashwani Kumar, Pyramid Infratech says, “The 25 bps reduction in the repo rate to 6% after February is set to breathe new life into the housing market. Amidst the surge in demand for high-end 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 enthusiasm alongside more competitive lending options from financial institutions.”

Yash Miglani, Managing Director, Migsun Group, said that the RBI’s decision to reduce the repo rate by 25 basis points to 6% is a timely push for the real estate sector. Easier access to credit will uplift buyer sentiment, especially in the mid and affordable housing segments where cost sensitivity is high. We anticipate increased traction in both inquiries and conversions, which will encourage developers to fast-track launches and investments. This move sets a positive tone for sustained growth in the coming quarters.”

Ravindra Gandhi, Founder and Managing Director of Tirasya Estates, stated, “With the repo rate now reduced to 6%, the RBI’s expected move provides a much-needed stimulus to both the economy and the housing market. The move is expected to give a strong push to the luxury housing segment, especially in tier 2 and 3 cities like Goa, where the demand for second homes is steadily rising. It’s a step that will energize buyer sentiment and drive sustained demand across urban and suburban markets”.

Saurab Saharan, Group Managing Director, HCBS Developments, says, “Bringing the repo rate down to 6% through a 25 basis points cut is likely to open up new opportunities for the luxury housing market. Lower interest rates enhance the purchasing power of high-net-worth individuals who are often waiting for the right moment to invest. This move will not only speed up decision-making among discerning buyers but also create room for innovation and bold offerings from developers aiming to capture premium demand”

Piyush Kansal, Executive Director of Royale Estate Group, stated that the decision to reduce the repo rate to 6% is a timely and appropriate move for the real estate sector. This will directly benefit the demand for mid-segment and affordable housing. In today’s time, buyers make loan-related decisions very cautiously, so a reduction in EMIs will encourage them to invest in property. We are hopeful that this will lead to an increase in sales in the coming months and bring stability to the real estate market.

Dimple Bhardwaj, Head Channel Sales & Marketing, Better Choice Realtors Pvt Ltd- RBI’s move to cut the repo rate by 25bps and reduce it to 6% has brought a greater relief to the real estate sector. Following the previous cut in February, this step strengthens confidence among buyers and developers, especially amid the swift shift in global sentiments. A lower policy rate will encourage borrowing, prompting more individuals to invest in property purchases and driving demand in the housing sector. Thus, we look forward to a surge in activity in the sector following this announcement.

Umesh Rathore, VP – Sales & Marketing, VVIP Group- The RBI’s decision to cut the repo rate by 25 basis points is a timely and much-needed move. This crucial step is expected to boost market momentum while strengthening both housing demand and supply. With EMIs set to come down, affordability will improve, encouraging more homebuyers to take the plunge. For the real estate sector—particularly in the NCR region, where demand has been steadily growing—this decision is likely to trigger a notable rise in residential sales.”

Dr. Vishesh Rawat, VP and Head of Sales, Marketing & CRM, M2K Group, says- The RBI’s 25 bps repo rate cut, bringing it down to 6%, was widely anticipated. In a climate of recently rising global tariffs, this move offers timely economic relief. For the real estate sector, particularly housing, lower home loan rates can further boost demand, especially among first-time buyers. It also creates the right environment for developers to initiate new projects and tap into emerging micro-markets, fostering long-term sectoral growth. Umesh Bhati, Director of Operations at Bayside Corporations (BCS) said, The RBI’s decision to cut the repo rate by another 25 basis points, bringing it down to 6%, is a welcome step for the real estate sector. Lower borrowing costs will ease the financial burden on homebuyers particularly first-time buyers by making EMIs more manageable and homeownership more attainable. This move is also likely to encourage developers to launch new projects, keeping the sector’s growth momentum on track.

Ajendra Singh, Vice President (Sales & Marketing) of Spectrum@Metro Mall, said, “The RBI’s decision to cut the repo rate by 25 basis points to 6% is a timely move that offers much-needed support to the commercial real estate sector. With financing now becoming more affordable, developers and businesses can move forward with expansion plans more confidently, even as they deal with rising operational costs. This step also boosts investor confidence and sets the tone for steady, long-term growth.’