As the Reserve Bank of India’s Monetary Policy Committee (MPC) prepares for its June 2025 meeting, the prospect of a rate cut—possibly as deep as 50 basis points—has sparked a range of reactions across the real estate sector. From expectations of EMI relief and a revival in affordable housing demand to concerns about limited transmission and the need for liquidity support, developers and industry experts offer diverse perspectives on what a potential policy shift could mean for homebuyers, refinancing trends, and capital-starved housing segments.
Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Private Limited:
” If the RBI were to look at a possible 50 bps “jumbo cut”, it could create a signalling effect for how loans are determined affordable, but it also needs forethought as set out below. Potential borrowers could see their EMIs decrease in the order of ₹800-₹1,200 per lakh depending on whether they are on a floating-rate loan, and it would immediately improve their liquidity. However, deposit rates could go down from already near record levels of 2.7% on savings for conservative savings which could compromise savers. Depreciation of the rupee, with CPI inflation linked to FY26 at 3.5%, may not even become a large factor if they choose to refinance their existing high cost debt or move a loan to the repo rate. As issues with uncertain global tariffs and fiscal deficits are increasing, I would say moderate the expected transmission effects of this proposed cut when and if it occurs. With the mention of the term deposits I would act as quickly as possible, and borrowers should be aware of their reset clauses to derive the most benefit.”
Anurag Goel, Director, Goel Ganga Developments:
” Quick EMI relief is likely if RBI goes for a 50 bps cut! If one takes a repo-linked home loan, the same could be reprice in about 1 – 3 months bringing down monthly outgo by ~₹ 1,200 per ₹ 50 lakh over 20 years. MCLR-linked home loan borrowers will be able to benefit in the end, but not until banks re-adjust. I think the affordable segment and first time home buyers in Tier-2/3 cities will benefit the most since affordability is improving alongside infrastructure growth. In this latest analysis of the industry, the bottom line, cumulative cuts in this cycle could reach 100 bps—so now is the time for entry and definitely. But, Lenders may (and are likely) given the choice tend towards tenure reduction as opposed to EMI reductions—use your negotiation power on your application. “
Piyush Bothra, Co-Founder and CFO, Square Yards:
“Despite India’s economy growing by a robust 7.4% in the January–March 2025 quarter — exceeding expectations — the full-year growth for FY 2025 is has slowed to 6.5%, marking the weakest pace since the pandemic. With inflation well within control, now hovering near 3%, this is an opportune moment for the central bank to take some bold steps. A significant rate cut is not just desirable but necessary to revive the animal spirits and boost private investments, which have been quite sluggish. The real estate sector mirrors the broader economic trend, with growth moderating after a strong post-pandemic rebound. A meaningful reduction in the repo rate could be the catalyst the property market needs. To put it in perspective, even a 1% reduction in interest rates can increase a homebuyer’s purchasing power by nearly 10%, turning the dream of owning a house into reality for a larger population.”
Keshav Mangla, GM Business Development of Forteasia Realty Pvt. Ltd
“An aggressive easing by the RBI could help kickstart construction financing but will not address the key issues at hand. While lower borrowing costs may incentivize developer sales in peripheral areas, the Tier-1 oversupply remains. It is also critical to note that the current lending tightness in housing finance could stifle transmission to affordable housing. If there is any surge of investor flows, it will occur in projects with national infrastructure highway connections or logistics parks. To keep things going, the RBI needs to complement cuts with injections of liquidity because a huge systemic surplus is needed before banks can unlock credit for stalled mid-income housing projects.”
