India’s real estate industry hailed the Reserve Bank of India’s decision to reduce the key interest rate by 25 basis points on Friday, saying this rate cut will have a positive impact on the overall sector, making home loans more affordable and increasing demand for housing.
“With lower interest rates, we expect to see increased sales, improved liquidity, and a reduction in the inventory of unsold homes. This, in turn, will encourage developers to launch new projects, creating new opportunities for homebuyers and investors,” said G Hari Babu, National President of NAREDCO.
“In addition, I believe that this move will have a positive impact on the affordable housing segment, which is a priority area for the government. With lower interest rates, more homebuyers will be able to afford homes, leading to increased sales and improved liquidity for developers. This, in turn, will encourage developers to launch more affordable housing projects, addressing the huge demand-supply gap in this segment,” he added.
Also Read: RBI Cuts Repo Rate by 25 bps: What should homebuyers do now?
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said, “For real estate, a rate cut after such a long period is a significant boost. Lower borrowing costs will improve home affordability, strengthening buyer sentiment, particularly in the mid-income and premium housing segments. Historically, reduced interest rates have triggered an upswing in housing demand, benefiting both homebuyers and developers. Additionally, improved credit access will support developers in securing funding for project execution, ensuring steady supply and timely deliveries.”
With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.
Akash Khurana, President and CEO, Krisumi Corporation, said, “The Central Bank’s unanimous decision to cut the repo rate by 25 bps is definitely a welcome move that will enhance liquidity in the economy, making credit more accessible and boosting overall consumption. This follows the last MPC decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which has already injected significant funds into the banking system. Lower interest rates are expected to stimulate housing demand by making home loans more affordable, strengthen market confidence, and provide much-needed momentum to the real estate sector, ultimately supporting economic growth.”
Here’s what India’s leading developers said about the RBI decision to cut the repo rate:
Rajjath Goel,
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