The Reserve Bank of India (RBI) announced a 25 basis point cut in the repo rate, bringing it down to 6.25%, marking the first reduction in five years. The real estate sector has welcomed the move, anticipating a boost in homebuyer sentiment and increased affordability in the housing market.

The Monetary Policy Committee (MPC), chaired by the RBI Governor Sanjay Malhotra, maintained a 'neutral' stance, citing controlled inflation, fiscal discipline, and stable economic growth as key factors behind the decision.

Dr. Niranjan Hiranandani, Chairman of NAREDCO, called the rate cut "long-awaited and strategic," emphasizing that it would enhance market resilience despite global uncertainties. He noted that combined with recent budget tax benefits for the middle class, the lower interest rates would encourage home purchases.

Domnic Romell, President of CREDAI-MCHI, highlighted the move as "timely relief" for homebuyers and developers. He stressed the importance of banks passing on the benefits to borrowers through lower EMIs, which would drive housing demand, particularly in metro cities.

Shishir Baijal, CMD of Knight Frank India, said the decision would stimulate economic growth and increase home loan affordability. He pointed out that the budget's fiscal discipline and targeted spending had created room for the RBI to maneuver a rate cut.

Dr. Samantak Das, Chief Economist at JLL India, described the rate cut as a "pivotal shift" that aligns with government fiscal strategies to reignite consumption. He projected that the move, coupled with budget incentives, would help sustain housing demand, especially in the sub-₹50 lakh segment.

While Kaushal Agarwal, Co-Founder of The Guardians Real Estate Advisory, noted that the lower cost of borrowing would ease financial pressures on developers and support new project launches, Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP of NAREDCO Maharashtra, stated that reduced EMIs would make homeownership more accessible while boosting market activity and developer confidence.

Venkatesh Gopalakrishnan, Director at Shapoorji Pallonji Real Estate, emphasized that the rate cut would be a major boost for affordable and mid-segment housing, making home loans more attractive and encouraging investments in the real estate sector.

With inflation projected at 4.2% for FY26 and GDP growth estimated at 6.7%, experts believe the rate cut will provide a strong push to real estate demand while ensuring economic stability.