The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 5.25% has infused renewed optimism across the National Capital Region’s real estate spectrum, with developers and industry stakeholders anticipating accelerated demand and improved liquidity heading into 2026. The policy shift, announced at a time when the real estate market is already experiencing strong momentum, is expected to play a pivotal role in boosting both residential buying sentiment and commercial expansion.
The cut is widely viewed as a catalyst for unlocking affordability for homebuyers and enabling developers to advance project timelines and explore new high-growth corridors. Industry leaders assert that reduced borrowing costs will translate into better mortgage accessibility, stronger conversion rates, and strategically structured investments aligned with long-term wealth creation.Pankaj Jain, Founder and CMD, SPJ Group, says, “At a time when the real estate sector is growing exponentially, the RBI bringing the repo rate to 5.25% will give a major boost to the sector. Lower borrowing costs will make home loans more affordable, thereby encouraging more buyers to enter the market. Alongside, the move offers a stronger case for developers to expand into untapped micro-markets. Entering 2026, we foresee a more balanced, demand-driven ecosystem where both residential and commercial segments grow in tandem.”
Industry sentiment is particularly strong in Gurugram, where premium and luxury housing have recorded a sharp rise in demand. The new lending environment is expected to significantly support upgrade buyers and end users who have been navigating elevated EMI pressures over the past year.Rajjath Goel, Managing Director, MRG Group, says, “The 25 bps cut to 5.25% signals a clear shift towards an accommodative cycle and comes at the right time. Lower home-loan rates will directly improve EMI affordability and boost sentiment, especially among end users and upgrade buyers in Gurugram’s luxury housing market. Even this marginal reduction can accelerate conversions and strengthen demand. We expect this move to propel conversions in the coming quarter and further strengthen real estate’s position as a preferred long-term wealth-creation asset heading into 2026.”
Beyond the residential segment, Noida’s commercial and retail markets are also set to benefit as the rate cut enhances liquidity for developers and boosts corporate confidence in long-term leasing commitments. With growing attention from institutional investors, the region is already experiencing heightened interest in Grade A office and mixed-use formats.Sanchit Bhutani, Managing Director, Group 108, says, “This policy shift would act as a catalyst for the growth of Noida’s commercial real estate. After holding rates steady in the last two reviews, the RBI bringing the repo rate to 5.25% reinforces growth optimism. Lower borrowing costs will enable faster project execution and improve liquidity for developers. We believe this will accelerate absorption across Grade A office and retail spaces and strengthen long-term leasing activity. Heading into 2026, we expect higher institutional participation and a more robust, globally competitive commercial ecosystem.”
Additionally, the cut is expected to sustain the rapid evolution of high-street retail and neighbourhood commerce formats in Noida, sectors that have demonstrated remarkable growth post-pandemic as lifestyle consumption patterns shift.Ajendra Singh, Vice-President, Sales and Marketing, Spectrum@Metro, says, “The 25 bps rate cut brings a sense of optimism to Noida’s retail ecosystem. Over the last few years, we’ve seen how quickly neighbourhood retail here has evolved. This reduction makes it easier for developers to keep that momentum going. It frees up capital for building more curated high-street stretches and bringing in brands that genuinely add value to the community. This move signals stability, encourages long-term planning, and gives retailers the confidence to expand. As Noida’s catchments mature, we’re expecting healthier enquiries, fast.
As 2026 approaches, experts believe the RBI’s move will strengthen the real estate sector’s structural fundamentals—balancing supply and demand, supporting investment growth, and positioning NCR among the strongest markets in Asia for real estate-led economic expansion.
With affordability improving and developer confidence strengthening across both residential and commercial verticals, NCR real estate appears poised for a high-performing cycle driven by stable financing conditions, rising consumption, and sustained investor interest.