The real estate industry has welcomed the RBI’s 25-basis-point repo rate cut to 5.25%, calling it a timely boost for both affordability and housing demand. Developers, industry bodies and market experts say the reduction in borrowing costs will ease EMIs for homebuyers, improve liquidity for developers, and revive sales momentum across affordable, mid-income and luxury segments.

With property prices having climbed steadily over the past two years, stakeholders believe this rate cut arrives at a critical juncture—enhancing sentiment, accelerating decision-making, and strengthening the sector’s growth outlook for 2025 and beyond.

Here we take a look at what some of India’s top developers and industry experts said about the rate cut:

Dr. Samantak Das, Chief Economist and Head – Research and REIS, India, JLL: “The RBI’s decision to cut the repo rate by 25 bps is a powerful, proactive signal that strategically leverages India’s macroeconomic strength – a robust 8.2% Q2 GDP expansion alongside record-low headline inflation. This is not a reactive measure to a slowdown, but a confident and forward-looking deployment of monetary space to deliver a structural stimulus, ensuring the nation’s growth engine becomes more inclusive.

For the residential sector, this is a direct boost to affordability which has been a growing concern amid rising property prices. We have been observing price resistance in the affordable and mid-segment housing categories, with our estimates projecting residential sales in 2025 to be 8-9% down from last year’s robust 300,000+ units (in the top seven markets of India). Given the high penetration of external benchmark-linked loans, the transmission to homebuyers is expected to be quick, providing tangible EMI relief that directly addresses this affordability challenge. This move is the catalyst needed to revive purchasing power and activate the crucial segment of first-time affordable and mid-market homebuyers who have been waiting on the sidelines, transforming fence-sitters into active buyers. We anticipate this will not only invigorate demand in the top metro areas but also significantly boost the burgeoning housing markets in Tier 2 and Tier 3 cities.”

Anuj Puri, Chairman, ANAROCK Group: “The RBI’s decision to cut the repo rate by 25 bps is a distinct positive for the Indian real estate sector as we close 2025. Coming on the back of earlier easing cycles this year, this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments which are highly sensitive to interest rate fluctuations. With average housing prices across the top 7 cities having risen by notable double-digits (approx. 10%) in 2025 as per ANAROCK Research, this rate cut provides a critical cushion to affordability, potentially bringing home loan interest rates to more attractive levels. This can encourage aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge. The rate cut is a distinct sentiment multiplier for year-end sales. However, the real impact hinges on the effective transmission of these benefits.”

Shishir Baijal, International Partner, Chairman & Managing Director, India Knight Frank: “We welcome the RBI’s positive move to cut rates by 25 bps, as it signals growing confidence that inflation will remain low on a durable basis. The decision also reflects a greater willingness to support growth more assertively. The reduction in borrowing costs should offer timely relief to the real estate sector, where lower home loan rates can help sustain momentum in end-user demand and improve developers’ cost structures. We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters.”

Dinesh Gupta, President, CREDAI Western UP: “The 25 basis point reduction in the repo rate is a highly positive step for the real estate sector. It will lower home loan EMIs and make housing more affordable for common buyers. We are confident that the coming quarters will witness a significant rise in bookings and sales. This decision will infuse new energy and confidence across the market.”

Yateesh Wahaal, Director, M3M India: “The RBI’s decision to reduce the repo rate by 25 bps to 5.25%, while maintaining a neutral stance, is a timely and confidence-enhancing step for India’s real estate sector. Lower borrowing costs will significantly improve home-buyer affordability and further uplift sentiment in a market already witnessing strong end-user traction. For developers, the reduction in capital costs provides much-needed headroom for faster project execution, product innovation, and stronger liquidity management. This policy direction underscores the RBI’s calibrated approach—supporting economic expansion without compromising financial stability. We expect this rate cut to unlock renewed momentum across both residential and commercial segments, catalysing investments and long-term housing commitments. Overall, it is a constructive and growth-aligned move that strengthens the sector’s outlook for 2026 and beyond.”

Mohit Goel, Managing Director, Omaxe Ltd: “The RBI’s decision to reduce the repo rate is a timely and welcome move for the industry. It signals that the larger economic cycle is shifting toward growth, and it comes at a particularly important moment for the mid-segment where affordability plays a defining role. A reduction in borrowing costs immediately improves a homebuyer’s ability to plan a purchase, and for developers, it creates the right environment to advance launches and maintain construction momentum. The mid-income category has been the backbone of residential demand through 2024 and 2025, and this policy step strengthens that foundation further. A lower cost of credit has the power to unlock the next wave of housing momentum. With 2025 shaping up as a year of steady demand, improved supply pipelines, and clearer policy direction, this rate cut reinforces confidence that the real estate market is entering a more balanced and expansionary phase that can sustain itself well into the future.”

Rohit Kishore, CEO, Hero Realty: “The RBI’s decision to reduce the repo rate to 5.25% while maintaining a neutral policy stance is a steady and reassuring move for the real estate sector. Stable borrowing costs will benefit both homebuyers and developers. For buyers, it means continued lower EMIs and easier access to home loans, which can encourage more people to buy homes. For developers, the sustained interest rates will help manage costs and finish projects on time. This policy continuity will boost confidence in the market and maintain demand for homes and office spaces. We expect the luxury housing segment to stay strong, especially in metro cities. Lower EMIs and better loan offers will make people more confident to buy. For the real estate industry, especially the residential sector, the RBI’s decision underlines stability and predictability, two factors widely regarded as essential for sustained market health. Stable rates and recent liquidity support from the central bank help developers manage project costs, push new launches, and keep housing supply robust. The continuation of favourable credit conditions and the steady pace of earlier rate cuts also maintain affordability, especially in the mid- and affordable housing segments, and underpin a cautiously optimistic outlook for the market.”

Manik Malik, CEO, BPTP: “The Reserve Bank of India’s decision to maintain its policy stance, while indicating a calibrated approach toward future adjustments, reflects a balanced view of economic conditions. Such measures, when undertaken over time, have historically contributed to improved financial liquidity and broader market stability. From an industry perspective, a supportive interest-rate environment has the potential to positively influence housing affordability and overall sentiment. Combined with India’s ongoing focus on infrastructure development and regulatory clarity, these factors may help strengthen buyer confidence and support sustainable sectoral activity.”

Uddhav Poddar, CMD, Bhumika Group: “The RBI’s 25 bps rate cut could not have come at a more decisive moment for the housing market. Buyer sentiment typically strengthens toward year-end, and this reduction will make home loans more comfortable for buyers. In NCR, where demand for larger formats and luxury housing is already surging, we expect accelerated conversions in Q4. Looking ahead to 2026, this softer rate regime will support a healthier, more sustained growth cycle across NCR’s residential corridors.”

Mohit Batra, Regional Director at Realistic Realtors: “The rate cut will act as a strong catalyst for demand revival, particularly during the crucial year-end transaction period. “In luxury housing, a softer rate environment provides psychological comfort to buyers, accelerating decision-making and supporting faster closures. On the commercial side, lower borrowing costs will back expansion plans, strengthen pre-leasing momentum, and spur the development of new Grade A office spaces across the region.”

Amrita Gupta, Director, Manglam Group: “The RBI’s decision to cut policy rates will significantly support housing demand in Tier 2 and Tier 3 cities, where affordability plays a central role in purchase decisions and homebuyers are particularly sensitive to EMI movement. Improved borrowing costs are expected to bring greater confidence to end users and accelerate decision-making among families who have been evaluating long-term ownership. These markets have already seen strong growth in plotted developments, mid-range apartments and integrated townships, and a lower interest rate environment could help deepen demand further and widen participation. For developers operating in emerging cities, reduced funding pressure also helps maintain construction momentum and encourages investment in new residential supply.”

Aditya Kushwaha, CEO and Director, Axis Ecorp: “The RBI’s 25 bps rate cut comes at a very favourable moment for the real estate sector, particularly for buyers evaluating holiday homes and second homes. A reduction in borrowing costs naturally improves sentiment and encourages more decisive purchase behaviour. In a market like Goa, where interest from NRIs and young investors has been steadily rising, this move will further support demand and make lifestyle-led property investments more achievable. We expect this momentum to translate into stronger enquiries and healthier conversions as buyers factor in both improved affordability and long-term value creation.”

Binitha Dalal, Founder and Managing Partner, Mt. K Kapital: “The RBI’s rate cut is a welcome move that comes at a crucial time for the economy. It will increase purchasing power in the hands of consumers and allow households to access loans, including home, car and personal loans, at more comfortable rates. This is likely to to boost the housing sales and support the momentum for the last quarter of the financial year. The reduction in borrowing costs also helps businesses maintain growth plans and continue investing confidently in both domestic and export markets, especially in the absence of a trade agreement with the United States. Additionally, the move supports the strength of the rupee and reinforces stability in the economic environment, contributing to broader financial confidence. By improving liquidity, encouraging consumption and strengthening market sentiment, this rate cut plays a meaningful role in sustaining India’s growth trajectory and supporting the long-term health of the economy.”

Harsh Jagwani, Managing Director, Notandas Realty: “The RBI’s move to reduce the repo rate to 5.25% comes as a much-needed relief and boost to the economy. With a neutral monetary policy stance, it will help maintain the economic stability and resilience of the country in times when the Indian rupee has depreciated and the US tariffs have had some impact on the market. With the GST rationalization a few months ago as well as several rate cuts by the RBI, it has positively impacted the real estate sector, especially the luxury segment driving the growth across India and in Mumbai. With the festive season buoyancy still ongoing in the market, we can expect the coming months to witness further growth in the mid-premium and luxury housing units post this announcement. This will also be an opportune time for foreign investors as well as UHNIs to enter the real estate market as the country’s economy has shown positive growth this year and we believe it will continue in the next year as well.”

Dinesh Jain, CMD, Exotica Housing: “The rate cut is a major relief for families who had been delaying their home-buying decisions due to EMI pressures. Lower interest rates will significantly improve affordability and restore buyer confidence, encouraging people to purchase homes without hesitation. This move will not only boost residential sales but also strengthen project deliveries, bringing stability and growth to the real estate sector.”

Suresh Garg, CMD, Nirala World: “Lower interest rates will greatly benefit homebuyers as affordability will directly increase. People will now be able to make purchase decisions without delay, which will have a direct impact on project sales and new launches. This move will prove beneficial not only for buyers but for the entire real estate ecosystem.”

Ashish Bhutani, CEO, Bhutani Group: “A cut in the repo rate is a powerful growth catalyst for real estate. Lower interest rates directly enhance affordability, stimulate end-user demand, and unlock fresh investment across segments. This move will significantly boost market sentiment and accelerate the sector’s growth trajectory.”

Ravi Prakash Pandey, Founder and Chairman, Amravati Group: “Lower interest rates breathe fresh life into housing demand: more buyers, stronger confidence, and a renewed wave of growth for developers and communities alike.”