The Reserve Bank of India, in a bid to support the economy, has cut the repo rate by 25 basis points to 5.25 per cent. This move is expected to make borrowing slightly cheaper for banks and consumers. The RBI has maintained a neutral stance and announced liquidity measures, including buying government securities worth ₹1,00,000 crore and a 3-year USD/INR Buy Sell swap of USD 5 billion this month to inject durable liquidity into the system. Together, these steps are aimed at ensuring smooth money flow and sustaining economic activity.
Industry experts, including those from the real estate sector, believe the RBI’s latest move will offer timely relief to the economy. The rate cut is expected to ease borrowing costs and improve fund flow across banks and businesses. Real estate players feel it could nudge homebuyers, especially in the affordable and mid-income segments, and support steady housing demand. Overall, experts see the policy as a positive step that boosts confidence and supports stable economic activity.
Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, said, “The RBI’s decision to cut the repo rate by 25 basis points comes at an opportune moment, with inflation under control and the economy on a stable footing. This move is expected to stimulate consumption across sectors, reinforcing overall economic growth. The housing sector, particularly affordable and mid-segment housing, stands to benefit as lower home loan rates are likely to encourage cautious buyers to make their purchase decisions.”
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said, “We welcome the RBI’s decision to cut the repo rate by 25 bps to 5.25 per cent amid easing inflation. The move would definitely support the ongoing momentum of overall economic growth, further strengthening demand and investment activity.”
“This latest rate cut is expected to further strengthen market sentiment, enhance purchasing power, and support continued growth in housing demand across key segments,” he added.
Mr. Vikas Bhasin, Managing Director, Saya Group, said, “The RBI’s 25 bps rate cut is a timely boost for the economy and a clear signal of easing financial conditions. For borrowers, this translates into lower EMIs and improved liquidity, while for homebuyers it significantly enhances affordability and purchasing power. With borrowing costs easing, we expect renewed momentum in housing demand, particularly in the mid-income and first-time buyer segments.”
Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The 25-bps repo rate reduction is well aligned with the current low-inflation environment and India’s steady growth outlook. The luxury housing segment has seen decisive momentum from end-users over recent quarters, driven by rising incomes and a shift towards lifestyle-led living. Softer lending rates will further enhance affordability for discerning buyers looking to upgrade and invest in high-quality homes that offer better design standards and long-term asset value.”
Mr. Sumit Agarwal, Director, Ashtech Group, said, “The 25 bps rate cut is a welcome boost for borrowers as it directly reduces EMI pressure and improves overall loan affordability. Home loan rates, which had climbed above 9% early last year, are now already below 7.5%. With this cut, we expect rates to move closer to the 7%–7.25% range—an attractive window for homebuyers.”
Ms. Binitha Dalal, Founder and Managing Partner, Mt. K Kapital “The RBI’s rate cut is a welcome move that comes at a crucial time for the economy. It will increase purchasing power in the hands of consumers and allow households to access loans, including home, car, and personal loans, at more comfortable rates. This is likely to stimulate demand across categories and support strong sales momentum in the last quarter of the financial year. The reduction in borrowing costs also helps businesses maintain growth plans and continue investing confidently in both domestic and export markets, especially in the absence of a trade agreement with the United States. Additionally, the move supports the strength of the rupee and reinforces stability in the economic environment, contributing to broader financial confidence. By improving liquidity, encouraging consumption and strengthening market sentiment, this rate cut plays a meaningful role in sustaining India’s growth trajectory and supporting the long-term health of the economy.”
Ms. Amrita Gupta, Director, Manglam Group says, “The RBI’s decision to cut policy rates will significantly support housing demand in Tier 2 and Tier 3 cities, where affordability plays a central role in purchase decisions and homebuyers are particularly sensitive to EMI movement. Improved borrowing costs are expected to bring greater confidence to end users and accelerate decision-making among families who have been evaluating long-term ownership. These markets have already seen strong growth in plotted developments, mid-range apartments and integrated townships, and a lower interest rate environment could help deepen demand further and widen participation. For developers operating in emerging cities, reduced funding pressure also helps maintain construction momentum and encourages investment in new residential supply.”
Mr Aditya Kushwaha, CEO and Director Axis Ecorp, says, “The RBI’s 25 bps rate cut comes at a very favourable moment for the real estate sector, particularly for buyers evaluating holiday homes and second homes. A reduction in borrowing costs naturally improves sentiment and encourages more decisive purchase behaviour. In a market like Goa, where interest from NRIs and young investors has been steadily rising, this move will further support demand and make lifestyle-led property investments more achievable. We expect this momentum to translate into stronger enquiries and healthier conversions as buyers factor in both improved affordability and long-term value creation.”
Mr. Samir Jasuja, Founder & CEO, PropEquity, NSE-listed real estate data analytics firm, says “The RBI’s continued reduction in the repo rate is a welcome move, especially in the backdrop of easing inflation and strong GDP growth. Lower borrowing costs provides a cushion to homebuyers against rising property prices thereby accelerating decision-making among fence-sitters.”
“Developers, too, are responding to this evolving demand landscape. A noticeable increase in new launches within the ₹2–5 crore segment indicates strategic alignment with buyer preferences. This segment, in particular, stands to benefit significantly from the consistent reduction in home loan rates, which is likely to further support real estate momentum.”
“Overall, the policy move is poised to give a strong fillip to volume-led sales across key geographies, reinforcing growth and confidence across the real estate ecosystem.”
Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, says “The RBI’s decision to cut the repo rate by 25 basis points comes at an opportune moment, with inflation under control and the economy on a stable footing. This move is expected to stimulate consumption across sectors, reinforcing overall economic growth. The housing sector, particularly affordable and mid-segment housing, stands to benefit as lower home loan rates are likely to encourage cautious buyers to make their purchase decisions. Consequently, this could create a positive ripple effect, driving demand for quality homes and further strengthening market activity, while supporting investment sentiment and fostering long-term confidence in the real estate ecosystem.”