Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
“The RBI’s decision to cut the repo rate to 6.25%—its first reduction in nearly five years—signals a pro-growth shift aimed at sustaining India’s economic momentum. With GDP growth projected at 6.7% for FY26, this move will enhance liquidity, encourage investments, and stimulate demand across key sectors.
For real estate, a rate cut after such a long period is a significant boost. Lower borrowing costs will improve home affordability, strengthening buyer sentiment, particularly in the mid-income and premium housing segments. Historically, reduced interest rates have triggered an upswing in housing demand, benefiting both homebuyers and developers. Additionally, improved credit access will support developers in securing funding for project execution, ensuring steady supply and timely deliveries.
The real estate sector, contributing nearly 7% to India’s GDP and projected to reach 13% by 2030, will gain further momentum as urbanization accelerates and infrastructure investments expand. This move will also positively impact allied industries such as cement, steel, and construction materials, creating a multiplier effect on employment and overall economic activity. With a sustained focus on affordability and sustainable development, India’s housing market is well-positioned for long-term growth.”
Akash Khurana, President and CEO, Krisumi Corporation
The Central Bank’s unanimous decision to cut the repo rate by 25 bps to 6.25 percent is definitely a welcome move that will enhance liquidity in the economy, making credit more accessible and boosting overall consumption. This follows the last MPC’s decision to reduce the Cash Reserve Ratio (CRR) by 50 basis points, which has already injected significant funds into the banking system. Lower interest rates are expected to stimulate housing demand by making home loans more affordable, strengthen market confidence, and provide much-needed momentum to the real estate sector, ultimately supporting economic growth.
Sahil Agarwal, CEO, Nimbus Group
We welcome the RBI’s decision to cut the repo rate. There were strong expectations for a modest 25 bps rate cut in today’s monetary policy meeting, and the RBI has delivered on those expectations. The decision was driven by the need to support GDP growth, inflation remaining within a comfortable range for the past few quarters, and prevailing tight liquidity conditions. Additionally, global trade dynamics and financial market trends further reinforced the case for a rate reduction.The repo rate cut will not only improve liquidity but also boost consumption and purchasing power, ultimately driving economic growth. Lower borrowing costs are set to provide a significant push to the real estate sector, as reduced home loan interest rates make homeownership more accessible. This move is expected to encourage higher demand for housing, benefiting both end-users and investors alike.Udit Jain, Director, OneGroup
The 25 basis point cut in the repo rate is a welcome move, particularly for homebuyers in the affordable and mid-segment categories. Given that these housing segments are highly cost-sensitive, a lower EMI burden will undoubtedly encourage more buyers to take the plunge into homeownership.
Additionally, the rate cut is expected to provide a strong boost to housing demand in Tier II and Tier III cities, where affordability plays a crucial role in purchasing decisions. Combined with other favorable factors—such as increased savings from revised tax slabs in Budget 2025-26 and the upcoming implementation of the 8th Pay Commission—this move sets the stage for sustained growth in the real estate sector. The combined impact of these measures will give a much-needed boost to industries linked to housing, enhance home loan eligibility, improve affordability, and drive higher demand for housing in the near future.
Samir Jasuja, Founder and CEO of PropEquityThe RBI’s focus on maintaining stable inflation while promoting growth is a welcome move, and in line with the efforts of the government. The 25bps cut in repo rate, along with the announcements in the Budget towards boosting consumption, will help increase economic activity and direct investments towards the real estate sector especially in the affordable and mid-income housing. Making borrowing cheaper will not only help homebuyers, both new and old, but also provide liquidity to the developers.
According to PropEquity, the supply of homes in the affordable and mid-income category (priced Rs 1 crore and below) across top 9 cities has dipped by 36% in the last two year and 30% in the last one year in 2024 with Hyderabad and NCR witnessing drastic fall in supply in this category.
Garvit Tiwari, Director & Co-Founder, InfraMantraThe 25bps cut in repo rate will help reduce the EMI of home loan borrowers and make new loans cheaper. This is a welcome move in view of the fact that the real estate has come under some pressure in the last few quarters. While the luxury real estate segment may not be impacted much, this move will immensely benefit affordable and mid-income housing. Declining urban consumption is a cause for concern and with this cut, some reversal is likely in the coming quarters.Shishir Baijal, Chairman and Managing Director, Knight Frank India“We welcome new Governor Sanjay Malhotra and congratulate him on his first Monetary Policy Announcement. We are glad to hear the Monetary Policy Committee’s decision to The RBI’s decision to cut the repo rate by 25 basis points to 6.25% aims to stimulate economic growth amid expectations of easing inflation. The recent budget has also played a crucial role in managing inflation by focusing on fiscal discipline and targeted spending. This as well enabled the RBI to manoeuvre a rate cut.
For the real estate market, lower borrowing costs are expected to boost demand for home loans, making housing more affordable and stimulating sector growth. This is a positive development for both homebuyers and developers, potentially leading to increased sales and new project launches. We hope interest rate cuts will be passed on to consumer and the home loan rates become more attractive which combined with the earlier announced tax incentives spur residential demand across the different price brackets, but especially in the below INR 50 Lakh category, which has seen continued weakening of demand.
This rate cut, the first one since May 2020, is likely to support slowing economic growth by boosting consumption and investment. Increased liquidity in the banking system will help address market constraints, benefiting sectors like infrastructure and housing.
Overall, the RBI’s rate cut is a balanced approach to supporting growth while managing inflation and liquidity concerns, though the central bank must remain vigilant about the impact of the depreciating rupee.”
Jigar Trivedi, Senior Analyst, Reliance Securities
As anticipated, the Reserve Bank of India lowered its key repo rate by 25 bps to 6.25%, marking the first rate cut since May 2020 during the February meeting. This move comes amid a recent slowdown in economic growth and global trade uncertainty, as widely expected. The decision brings borrowing costs to their lowest level since January 2023. It was Governor Sanjay Malhotra’s first monetary policy review since taking charge as the 26th RBI governor last December. The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. Regarding economic outlook, the GDP is projected to reach 6.7% for FY 2026. Meanwhile, the central bank maintained its inflation forecast at 4.2% with projections of 4.5% for Q1, 4.0% for Q2, and 3.8% for Q3. The food inflation is expected to soften on the back of new crop arrival. Regarding currency movement, the new Governor made it clear that its decided by the market force and no specific band is targeted, which also means the RBI may not intervene in the currency market as expected. The rupee may stay volatile and the undertone is bullish in the USDINR pair. Going ahead, 88.00 is a resistance for a short term.
Narinder Wadhwa, Managing Director & CEO SKI Capital services Ltd
The RBI’s 25 bps rate cut aligns with market expectations, signaling a shift toward a more accommodative stance. The unchanged CRR suggests RBI is focusing on controlled liquidity infusion rather than aggressive easing. The 6.4% GDP growth projection indicates a stable economic outlook. Given the current growth-inflation dynamics, another 25 bps cut could be on the table later this year, in April especially if inflation remains under control and global conditions allow for further easing.
Abhishek Pandya, Research Analyst, StoxBox
Today’s monetary policy meeting was in line with our expectations, though a change in stance from “Neutral” to “Accommodative” would have been an icing on the cake. The repo rate cut of 25 basis points, the first in five years and the first by the new Governor, did not allude to the compulsive narrative of market participants as he signalled a more consultative and policy continuity approach going ahead. The key takeaway for us in the meeting was the central bank’s indication of following a flexible approach to the “flexible inflation targeting” model which essentially means that the future monetary policy would be more forward looking. In the current uncertain global and macro context, the inflation and growth forecast for FY26 looks promising, with the RBI putting its weight behind for a proactive liquidity management, evident from its desire for increased participation in the call money market. Going forward, we expect a shallow rate cut cycle from the central bank, with expectations of an additional 25 basis points rate cut in April monetary policy meeting along with additional liquidity measures in the near term considering the expected tight liquidity conditions in March 2025.
Dr Anshuman Jaswal, Director, NMIMS Indore
The Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points to 6.25% signals a shift towards supporting economic growth amid easing inflationary pressures. This move, the first rate cut in nearly five years, is expected to provide a boost to borrowing and investment, particularly in sectors like real estate and infrastructure that are sensitive to interest rate movements.
With global uncertainties, fluctuating crude oil prices, and potential supply-side disruptions, inflation risks are not entirely behind us. The RBI’s projection of CPI inflation at 4.8% for FY25 suggests confidence in price stability, but external shocks could disrupt this outlook. Additionally, the GDP growth projection of 6.7% for FY26 is promising but contingent on robust private sector investment and continued fiscal discipline. The rate cut could incentivize borrowing, yet its impact depends on how banks pass on the benefits to consumers.
Overall, the RBI has taken a calibrated approach by balancing growth concerns with inflation control. The focus on inflation and financial prudence highlights the central bank’s proactive approach to safeguarding India’s economic momentum in an uncertain global environment.
Minu Mehta, Dean, School of Commerce, NMIMS Mumbai
The RBI’s surprise rate cut of 25 basis points to 6.25% is a welcome move, sending a clear signal that it is prioritising growth while keeping a watchful eye on inflation. This measure is bound to improve market sentiments, boost liquidity, and create a positive environment for investment. By cutting rates, the RBI is complementing the government’s recent budget announcements of increasing the tax exemption limits. This will further incentivize the middle class by increasing their disposable income. This coordinated effort will go a long way towards stimulating growth, and increasing consumer spending particularly with respect to revitilazing the housing sector.
Mayank Mundhra, FRM- VP Risk & Head Research Abans Group
The rate cut of 25 basis points was on expected lines. GDP estimates have also been good at 6.7%, at the higher end of economic survey of 6.3%-6.8%. The estimates of inflation have also been announced at 4.2% for next financial year, much below the 4.8% expected at end of this FY. However, the MPC has maintained its stance as neutral. A dovish stance would have indicated the worst is behind us. They have mentioned the global volatility as one of the factors to be cautious about. Overall, the announcements are positive, with some layer of being vigilant
Venkatesh Gopalakrishnan, Director Group Promoter’s Office
“We commend the Reserve Bank of India for its proactive decision to cut the repo rate by 25 basis points to 6.25%, marking an essential move after nearly five years. This thoughtful step highlights the central bank’s commitment to bolstering economic growth while fostering a favorable environment for investors and homebuyers. The rate cut not only reflects confidence in India’s economic resilience but also reinforces the importance of a stable and growth-oriented monetary policy.
For the real estate sector, this development is a significant boost, particularly for affordable and mid-segment housing, where demand is steadily rising. Lower borrowing costs will further enhance home loan affordability, bringing the dream of homeownership closer for many aspiring buyers. Additionally, this move is likely to regenerate investments in the real estate sector, providing the much-needed motivation to sustain its growth. We are optimistic that this rate cut will positively influence market sentiment, strengthen buyer confidence, and catalyze long-term growth across all segments of the industry.”
Manav Raheja, Senior Partner at Veritas Legal, Advocates and Solicitors,
The RBI’s decision to cut the repo rate after five years signals a proactive approach to balancing growth and inflation in a dynamic global economic landscape. This move comes right after a populist fiscal budget which provided tax benefits to the middle class. Financial institutions will now provide liquidity and encourage borrowing to support the consumption theme. That said, with US sanctions and market volatility, the RBI will need to closely monitor the situation and pull back due to uncertainties in global trade and monetary policies in current macroeconomic conditions.
Nitin Bavisi, CFO, Ajmera Realty & Infra India Ltd on the RBI monetary policy
“The RBI MPC has delivered its first rate cut in five years. The repo rate now stands at 6.25% with the latest 25 bps cut.
This provides a crucial boost to economic growth. In a coordinated effort, the government and RBI continue to support the economy with sustained liquidity measures.
While the rate cut signals a shift, the policy stance remains neutral, leaving room for further action based on evolving economic conditions. With FY26 inflation projected at 4.2%, following a 4.5% rate in Q4, the stage is set for a lower rate environment. This reduction, combined with tax slab cuts, enhanced TDS limits on rent, and home loan interest deduction has enhanced affordability and increased disposable income, particularly benefiting the housing sector.
Branded real estate players offering integrated townships are poised to see significant demand, positioning the housing industry as the biggest beneficiary of this economic momentum.”
Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank
“The RBI’s decision to cut the Repo Rate by 25 bps to 6.25% while maintaining neutral stance to deal with external volatility is a timely and welcome step that will help sustain economic growth and momentum. By aligning monetary policy with the Union Budget’s investment and growth focus, the RBI has reaffirmed confidence in India’s financial system and long-term economic resilience.
With borrowing costs set to ease, MSMEs, rural businesses, and semi-urban borrowers stand to benefit the most. The macroeconomic outlook, coupled with favourable growth-inflation dynamics and a well-balanced mix of fiscal and monetary policies are aligning for pro-growth stance, creating an ideal environment for accelerated credit growth and vibrant business momentum in the economy and banking space, especially for banks like ours, with a clear focus on serving the Middle Income Group (MIG) segment with emphasis on rural and semi-urban areas (SURU).”
Dhaval Barot, Managing Director of Bharat Realty Venture Pvt Ltd
“The overall decision of the Reserve Bank of India to lower the repo rate by 25 basis points to 6.25% can spell good news for the real estate industry, especially after last week’s successful budget announcement. This positive step is projected to upsurge market activity, housing demand, and real estate investment. Homebuyers will get much-needed respite with lowering EMIs, affordable real estate purchases, and lower home loan interest rates. As buyers and developers gain confidence, the real estate sector will be strengthened and encouraged. Additionally, the announcement reflects the government’s focus on economic growth by promising long-term steadiness in the housing market. This tax cut will benefit both homeowners and developers, which is a key driver of the development of the Indian real estate market.”
Ranen Banerjee, Partner and Leader, Economic Advisory, PwC India.
“The new RBI Governor and the MPC delivered the widely accepted 25bps policy rate cut with policy stance as neutral leaving room for it to take further actions in its next meeting. The MPC would have got comfort from the expectation of a moderating food inflation and under check core inflation giving an inflation estimate for FY26 at 4.2%. It has delivered the required monetary policy support to the economy and this combined with the consumption boost from the tax relief announced in the budget should give momentum to demand and pushing the FY26 growth rate to the higher end of the 6.3% to 6.8% growth range anticipated in the Economic Survey.”