Real estate sector has cheered RBI’s 25 bps rate cut as a push for affordability and boost for housing demand. A cross-section of real estate stakeholders give their expert opinion on the impact of RBI’s action and the road ahead for real estate.

Shekhar Patel, President, CREDAI

The central bank has slashed key benchmark interest rate for the first time in six months and took bold steps to boost liquidity in the face of high US tariffs. This will further strengthen positive market sentiment , lower borrowing costs, support credit growth and stimulate demand across sectors including real estate. As liquidity is no longer a key concern for the central bank, Credai anticipates a strong close to the financial year and sustained momentum in housing demand across all segments. 

Ashwinder R Singh, Chairman CII Real Estate Committee, Advisr NAR India & Vice Chairman, BCD Group

A 25 bps cut may look small, but its impact is meaningful. EMIs ease, confidence rises and developers get breathing room to build faster. It nudges fence sitters to buy and gives the sector a stronger foundation for 2026 growth cycle.

Parveen Jain, President, NAREDCO 

The latest rate cut of 25 bps by the RBI, is an important step towards giving fresh momentum to the economy and the real estate sector. This move will improve liquidity and encourage new investments . The positive impact will extend to allied industries as well . In Tier 2-3 cities, the rate cut will further boost interest among both developers and buyers. 

Anshuman Magazine, Chairman & CEO- India, S.E Asia, Middle-East & Africa, CBRE

For real estate, the rate cut will boost demand and strategic investment sentiment across segments. For home loan borrowers, this might bring tangible relief as floating rate EMIs will ease. We expect the market momentum to accelerate further in the coming weeks and hope for greater demand in the mid and affordable segment.

Ashok Kapur, Chairman Krishna Group & Krisumi Corporation

The 25 bps repo rate cut is well aligned with the current low inflation environment and India’s steady growth outlook. The luxury housing segment has seen decisive momentum for end-users over recent quarters. Softer lending rates will further enhance affordability for discerning buyers, looking to upgrade and invest in high quality homes that offer long-term asset value. We expect sustained demand within the premium segment as consumer confidence evolves around integrated high quality future-ready developments.

Amit Goel, MD, India, Sotheby’s International Realty

Considering that real estate is a capital intensive industry and there have been years of elevated construction costs. RBI’s decision to cut repo rates by 25 bps offers a meaningful relief . Cheaper credit boosts confidence  from home buyers to institutional investors and it should drive demand, transactions and price stability. 

Venkatesh Gopalakrishnan, MD, Shapoorji Pallonji Estate

The RBI’s calibrated move supports growth, anchors inflation expectations and strengthens market confidence. For the housing sector, especially mid-income and aspiring buyers, lower borrowing costs enhance affordability and uplift sentiment. As rate cut gets passed on, it will accelerate the mid-income segment while premium category benefits through upliftment in market confidence and improved investment sentiment, catalysing demand .

Samir Jasuja, Founder & CEO, PropEquity

Following 25 bps rate reduction, lower borrowing costs provide a cushion to homebuyers against rising property prices ,to push demand. Developers are responding to the evolving demand landscape. A noticeable increase in new launches with INR 2-5 crore price tag, indicates strategic alignment with buyer preferences , thereby benefiting this segment. Overall, the policy move is poised to give a strong fillip to volume – led sales across key geographies, reinforcing growth and confidence across the real estate ecosystem.

Vijay Wadhwa, Chairman, Wadhwa Group

In pivotal markets like Mumbai, the rate cut is expected to accelerate demand for well-planned future-ready residential communities. If the direction holds, we anticipate further improvement in affordability , deeper institutional confidence and continued consolidation of developers who operate transparently and at scale. 

Shrinivas Rao, CEO, Vestian

With borrowing costs further declining, we expect project construction to accelerate and demand to pick up significantly. For commercial real estate, lower funding costs and improved leasing activity are likely to fast-track occupier expansion and support new developments. Capital-intensive housing sector will particularly benefit from improved affordability. This also brings better clarity for long-term investment and energises broader credit expansion.

Rajat Khandelwal, Group CEO, Tribeca Developers

TORBIT FORUM

Lower borrowing costs not only improve financial predictability but also strengthen buyer confidence. Stable and reasonable costs will play a crucial role in sustaining real estate growth.

Sudeep Bhatt, Director Strategy, Whiteland Group

The real estate sector as a whole stands to benefit from the re-established buyer sentiment and growth in investment appetite as EMIs fall and borrowing costs ease. The RBI move will improve clearance of unsold inventory and streamline project launches.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India )

The real estate sector has remained on a steady growth trajectory as the prior cumulative repo rate reduction of 100 bps coupled with income-tax relief , GST rate rationalization earlier this year, has made home loans cheaper but has also significantly  improved overall affordability for homebuyers. It will be further boosted by the latest 25 bps rate cut.