The RBI’s decision to reduce the repo rate by 25 basis points to 6.25% has been warmly welcomed by the real estate sector. This policy move is seen as a boost for the market, as lower borrowing costs can lead to increased liquidity, stimulating both residential and commercial development projects. Developers and investors are optimistic that reduced interest rates will drive affordability, encourage new investments, and create a healthier market environment. The decision is expected to foster stronger market confidence and promote sustained growth, ultimately benefiting consumers and strengthening the overall economic landscape. This initiative is eagerly embraced by experts.

Manoj Gaur CMD Gaurs Group and Chairman CREDAI National

The repo rate cut by RBI is a very welcome move. Coming at the heels of a people’s friendly budget, the repo rate cut of 25 bps announced by RBI will definitely infuse positive sentiments in the economy. Coupled with the income tax rebate, and tax concessions on second home and rental income, it will not only infuse liquidity in the market but also leverage the real estate sector’s investment potential. Real estate nationally has seen some good investment nationally in the past year and this trend is bound to continue in the coming quarter with this announcement.

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

The RBI’s repo rate cut to 6.25%—its first in nearly five years—provides a significant boost to India’s real estate market. Lower borrowing costs are set to enhance home affordability and fuel buyer confidence, particularly in the mid-income and premium segments. With our sector already making a substantial economic impact, this move paves the way for accelerated growth, increased project funding, and a thriving ecosystem that supports sustainable urban development.

Amit Modi Director, County Group

RBI’s decision to lower the repo rate by 25 bps to 6.25% brings relief to the real estate sector. The real implication of this move lies in the change in the stance of the central bank—this is the first rate cut in five years. This not only indicates a softening in RBI’s outlook but also carries a huge psychological implication for the market and leads us to expect more such reductions in the future.

Sanjay Sharma, Director, SKA Group

Central bank’s initiative not only aims to control inflation but also seeks to boost market sentiment. The first week of February has brought highly positive signals for the market, especially for the real estate sector. First, the budget introduced income tax relief, and now, with the repo rate being reduced by 25 basis points, the market is poised for an upswing. This decision will benefit both the general public and the sector at large.

Uddhav Poddar, CMD, Bhumika Group

A rate cut after five years is definitely a big moment for the country and indicates the direction of the RBI, this will raise the spirit of the entire economy and the real estate sector in specific. On the one hand, it will make purchasing properties cheaper it will also encourage consumption. But more than everything, this step will boost market sentiments and lead us to hope for more such rate cuts in the future.

Sandeep Chhillar, Founder and Chairman, Landmark Group

The RBI’s proactive rate cut, coupled with favorable announcements in Budget 2025, sets a positive tone for the real estate sector. Reduced interest rates will lower EMIs for first-time homebuyers, making homes more accessible. We welcome this decision by the government which will drive long-term growth across various segments.

Kushagr Ansal, Director Ansal Housing

The RBI’s move to cut the repo rate by 25 bps to 6.25% is a welcome signal for the sector. As a developer, this decision means lower financing costs and increased liquidity, which will help us pursue new projects and support broader economic growth.

Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group

The RBI’s decision to cut the repo rate by 25 basis points is a welcome move, especially after the growth-focused announcements made in the Union Budget 2025. With lower financing costs and increased liquidity, this step will directly benefit the real estate sector allowing both developers and home buyers easier access to credit. This will also stimulate demand across both residential and commercial segments. Thus, we look forward to a surge in activity in the sector following this announcement.

Dr. Amish Bhutani, Managing Director, Group 108

For a long time, there had been expectations that the RBI would cut the repo rate. Now, following the budget, the RBI’s decision to reduce it by 25 basis points is highly positive not only for developers but also for investors. This move will further improve market sentiment, and in the coming times, both the commercial and residential real estate markets are expected to witness significant growth. This decision clearly indicates that the government is strongly committed to boost the real estate sector.

Sanjeev Arora, Director, 360 Realtors

After a prolonged period, RBI has taken the decision to reduce the repo rate by 25 basis point. With inflationary pressure under control, this is a positive step for Indian economy. In addition to enforcing macroeconomic discipline, the heightened liquidity will help in driving demand and boost the consumer market. This will surely help residential, commercial, and hospitality real estate in India in a positive and organic manner. The industry was waiting for a repo rate cut since long and the recent correction by the GOI is indeed a welcome move.

Yash Miglani, MD, Migsun Group

With this 25-basis points rate cut, the RBI has sent a strong message of economic support, ensuring a more favorable lending environment. This move, along with recent budgetary measures, is set to enhance capital flow, strengthen buyer sentiment, and catalyze growth in key sectors. Lower borrowing costs will not only make credit more accessible but also encourage spending and investment, creating a positive ripple effect across the economy.

Gurpal Singh Chawla, Managing Director, TREVOC

The RBI’s first rate cut in nearly five years is a pivotal move. Cheaper borrowing costs, combined with recent tax concessions, create a strong tailwind for real estate. This shift isn’t just about affordability—it’s about renewed confidence in housing investments and liquidity flow.”

Manit Sethi, Director, Excentia Infra

A 25 bps reduction in the repo rate will have a ripple effect across the real estate sector. It will not only lower borrowing costs for developers but also sustain buyers’ interest in the sector. Notably, this could trigger an increase in property transactions, particularly in Tier 2 and Tier 3 cities where affordability and infrastructure are key growth drivers. This will make homeownership more feasible and encourage developers to expand their footprints in these high-potential regions.

Rajjath Goel, Managing Director, MRG Group

The RBI’s decision to cut the repo rate by 25 bps comes as a timely boost for the real estate sector. Lower interest rates translate to more favorable financing options, even for high-ticket properties. Combined with the increased disposable income from recent tax reforms in the Budget, this is an opportune moment for the sector, and we expect a sustained growth in sales this year.

Mukul Bansal, MD, Motiaz

“The RBI’s decision to reduce the repo rate by 25 basis points reflects a strategic effort to balance economic growth with inflation control. This timely move comes as the real estate market gains strong momentum. The lowered interest rates are expected to fuel greater enthusiasm among homebuyers, while also motivating developers to launch new projects and meet the evolving demands of a diverse buyer base.”

Vishal Sabharwal, Head Sales, Orris Group

“The RBI’s decision to cut the repo rate by 25 bps is a welcome move that aligns with the government’s progressive economic outlook. Lower interest rates will not only improve home loan affordability but also strengthen buyer confidence, driving real estate demand. Coupled with the Union Budget’s pro-housing measures, including tax relief and infrastructure investments, this monetary easing will provide the much-needed momentum for sustainable sectoral growth.”

Prateek Mittal, ED, Sushma Group

“The recent cut in the repo rate to 6.25%, coupled with the revised income tax slabs, is a significant boost for the real estate sector. Lower interest rates will make home loans more affordable, while increased disposable income will enhance buyers’ purchasing power. This combination is set to drive demand, particularly in emerging markets. At Sushma Group, we are optimistic about the positive impact this will have on both homebuyers and the overall economy.”

Piyush Kansal, Executive Director, Royale Estate Group

The rate cut by the RBI, along with the structural reforms in Union Budget 2025, will stimulate both the supply and demand sides of the real estate sector. As legal frameworks become more investor-friendly and financing costs decrease, we expect a surge in both domestic and foreign investments in real estate, further strengthening the sector.

Ashwani Kumar, Pyramid Infratech

Amidst the surge in demand for high-end properties, a reduction in the repo rate is a significant move that will take sector’s growth to new heights. This decision reflects the government’s responsiveness to buyer sentiments, setting the stage for increased sales and market activity. We anticipate sustained interest from buyers, while financial institutions and banks are likely to introduce more attractive lending options, further boosting the sector’s momentum.

Prakash Mehta, Chairman and Managing Director, Ocus Group

‘The RBI’s decision to cut the repo rate by 25 basis points to 6.25%, coming on the heels of a people-friendly budget, is expected to relieve borrowers and encourage fresh investments, creating a ripple effect across industries by improving liquidity, making home loans more attractive for buyers, and strengthening overall economic dynamics, which in turn will boost consumer confidence, accelerate demand in key sectors, and contribute to sustained economic growth in the long run.

Harsh Gupta, CEO, Sundream Group

The 25 bps reduction in the repo rate is a welcome step that will infuse optimism in the market. Even a marginal cut can have a significant impact by improving consumer confidence, encouraging home purchases, and boosting real estate investments. We hope this marks the beginning of a series of policy measures aimed at driving growth.

Neeraj Sharma, MD, Escon Infra Realtors

The RBI’s decision to cut the repo rate by 25 bps marks a pivotal step toward fostering economic growth and easing financial burdens on homebuyers. At a time when the Union Budget has already signalled a middle-class-friendly approach, this move further strengthens affordability and market sentiment. A sustained reduction in interest rates will enhance liquidity, drive housing demand, and provide a much-needed boost to the real estate sector.

Dimple Bhardwaj, Spokesperson Raheja Developers

The announcement by RBI to slash the repo rate by 25 bps is welcome news. Coming after two years of status quo, the market had waited long for this moment. Even though the quantum is not huge still it will have a huge psychological impact on the market. When seen in conjunction with the budget 2025 the RBI’s move will help people fulfill people’s housing dreams and boost the real estate sector.

Ajendra Singh, Vice President Sales and Marketing, Spectrum Metro

Reserve Bank of India’s decision to cut the repo rate after five years is a highly positive step for the real estate sector. This move will not only provide relief to homebuyers but also boost the real estate market and the overall economy. The 25-basis point reduction clearly indicates that the RBI is keen on stimulating the country’s economic growth. Following the budget announcement, this is the second major decision in a week that will help strengthen the economy.