The Monetary Policy Committee (MPC) of the RBI announced a 50bps cut in repo rate to 5.5% and 100bps cut in CRR to 3%. This will help stimulate domestic private consumption and investment and step up the growth momentum.
Developers welcomed the move stating the rate cut and liquidity injection will make home loans affordable thereby driving demand for affordable and mid-income housing.
Dr. Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group said for the real estate sector, this rate reduction is set to bolster credit lending, accelerate buying velocity, and enhance development momentum. The resulting decline in home loan interest rates will directly benefit homebuyers by improving affordability and cushioning their financial commitments.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. said this bold move by the apex bank comes at a crucial time when inflation is easing, and the economy requires strong stimulus to sustain growth. Lower borrowing costs will make home loans more affordable, thereby encouraging more buyers to enter the market. The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more.
Jayant B Manmadkar, CFO, Brigade Enterprises Limited said the decline in home loan interest rates will offer additional relief to homebuyers as it will put more surplus money in their hands. It will subsequently benefit the growth of the real estate sector by instilling a sense of confidence in consumers.
Rakesh Reddy, Director, Aparna Constructions said the move will boost housing demand, spur investments, improve domestic liquidity and financial stability.Better access to affordable capital will also create financial flexibility for developers.
Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation said these steps will encourage homebuyers to make property investment decisions. Moving forward, this move will have a ripple effect on demand in the coming months across different segments of homes, ultimately contributing to sustained growth and increased confidence in the real estate market.
Anantharam V Varayur, Co-Founder, Manasum Homes Senior Living said banks should consider introducing special discounts or priority home loan schemes for those purchasing senior living homes. Additionally, reverse mortgage should be promoted more widely.
Priyanka Raju, Director, Kalyani Developers said the RBI’s move injects 2.5 lakh crore rupees into the banking system, ensuring ample liquidity to stimulate economic expansion. The reduced borrowing costs will encourage credit growth and capital investment, supporting broader economic development.
Ashish Kukreja, CEO and Founder of Homesfy.in said this proactive step aims to enhance liquidity, support investments, and make borrowing, especially for homebuyers, more affordable, though the benefit depends on timely transmission by banks.
Sanjeevini Group Chairman and Founder, Umesh Gowda H.A said the home loan rates have already fallen below the 8% mark and today’s measures will further reduce it thereby driving demand for mid-income and affordable homes. Bengaluru housing market is end-use driven with most transactions happening in the Rs 50L-2cr bracket. Reduction in home loans will have a far-reaching impact on this market.
Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited said for both existing and new borrowers, this cumulative 100 basis point reduction will provide significant relief in terms of reduced interest burden. Additionally, the move is expected to inject more liquidity into the system, further stimulating economic momentum. We believe this will have a positive impact on the real estate sector.
Jash Panchamia, Executive Director, Jaypee Infratech Limited said with several scheduled commercial banks already offering home loans below 8 percent, today’s decision may lead to a broader transmission of lower rates across the lending ecosystem. This will not only ease the financial burden on borrowers but also enhance affordability across housing segments, offering significant relief to homebuyers and providing a timely push for those planning property purchases.
Annuj Goel, Chairman, Goel Ganga Developments said while the RBI’s 50 bps cut has been audacious and visually bold in terms of allowing savings for its lenders. The market transmission of the cut could be months.
Aman Gupta, Director of RPS Group said while the RBI’s 50 bps cut will have an immediate impact on an EMI reduction, it is also opening doors of opportunity for homeowners to strategically reposition themselves.
LC Mittal, Director, Motia Builders Group said while a ₹75 lakh home loan means you could see your EMI reduced by ₹2,940 per month, the many borrowers will have to think of this as a short-term opportunity in an uncertain interest rate cycle. An aggressive interest rate cut accompanies increased inflation expectations.
Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors said India’s housing sector, though, have shown some weaknesses for the past couple of quarters, RBI’s decision on repo rate cut and CRR reduction will help maintain the momentum in the housing sector.
Nishant Deshmukh, Founder and Managing Partner, Sugee Group said lower interest rates, along with the revised inflation outlook, offer significant support to real estate buyers — particularly in metropolitan cities like Mumbai, where financial accessibility greatly influences decision-making.
Samyak Jain, Director, Siddha Group said this will significantly improve consumer sentiment and reduce the cost of borrowing, thereby accelerating housing demand, especially in mid-income and affordable segments. We appreciate the RBI’s continued efforts to balance inflation control with the need to maintain economic momentum amidst global uncertainties.
Shraddha Kedia-Agarwal, Director, Transcon Developers said such measures are crucial in reinforcing consumer trust and sustaining growth in India’s housing market, particularly in cities like Mumbai.
Ashish Sharma, AVP Operations, Brahma Group said the move enhances liquidity and lowers borrowing costs, making home loans more affordable and improving buyer sentiment, particularly in the affordable and mid-income housing segments.
Kamal Khetan, Chairman & Managing Director, Sunteck Realty Ltd. said lower interest rates will benefit homebuyers, especially in mid-income and premium segments where demand momentum is already building. We expect a strong uptick in residential inquiries and conversions as EMIs become more manageable for aspirational buyers. The move is also expected to give a much-needed push to the affordable housing sector, where even a small drop in EMIs can decisively influence buying decisions.
