Repo Rate Cut to 6.25%: How Real Estate Industry Experts View RBI’s Move?

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points (bps) from 6.50% to 6.25%. This is the first rate cut in five years and the first under Governor Sanjay Malhotra. The Monetary Policy Committee (MPC) unanimously decided on the reduction, reflecting a shift in policy amid changing economic conditions.

The decision comes amid global economic challenges. The U.S. government has introduced new tariffs on China, Canada, and Mexico, raising concerns about trade disruptions. Inflation in advanced economies remains high, delaying expected rate cuts by central banks. A stronger U.S. dollar has also led to capital outflows from emerging markets, including India.

The RBI has adjusted its growth projections for FY26. Q1 GDP growth has been revised from 6.9% to 6.7%, while Q2 growth is now estimated at 7% instead of 7.3%. Projections for Q3 and Q4 remain at 6.5%. On inflation, Q4 FY25 has been revised from 4.5% to 4.4%, and Q1 FY26 is now projected at 4.5% instead of 4.6%. Estimates for Q2, Q3, and Q4 FY26 stand at 4%, 3.8%, and 4.2%, respectively.

The rate cut is expected to reduce borrowing costs for businesses and consumers, supporting credit growth and investment.  With inflation aligning closer to the 4% target, the RBI has adjusted its policy while monitoring economic trends. Further rate changes will depend on evolving conditions.

Industry Experts Opinion

Mr. Varun Sharma, Founder and Managing Director, MVN Infrastructure

"We welcome the RBI’s decision to reduce the repo rate to 6.25%, a step that will provide a much-needed boost to the real estate sector. Lower borrowing costs will enhance affordability, encouraging homebuyers to invest in premium and luxury housing. At MVN, we anticipate increased demand for high-end residences as buyer sentiment strengthens. This move will also improve liquidity in the market, enabling developers to accelerate project execution and offer bespoke living experiences tailored to evolving consumer preferences".

Mr. Gaurav K Singh, Founder and Chairman, Womeki Group 

“The RBI MPC concluded on a 25 basis points rate cut, with a repo rate of 6.25%. The decision will stimulate economic growth, further lowering borrowing costs. Home loans and EMIs will also reduce, making loans more attractive for potential homebuyers and investors. For the real estate sector, it is a welcoming move, which will foster a steady development across the market.”

Mr.Sunil Sisodiya, Founder, Geetanjali Homestate

‘The RBI’s decision to cut the repo rate by 25 basis points is a welcome move, particularly for the real estate sector. This rate cut, coupled with recent tax relief measures, is expected to boost homebuyer sentiment by making home loans more affordable. The timing is crucial, as it aligns with the government’s broader efforts to stimulate economic growth and revive consumer demand.

Lower interest rates have historically encouraged fence-sitters to take decisive steps towards property investments, driving demand across residential and commercial segments. With the inflation outlook stable and economic growth projected at 6.7%, we anticipate increased liquidity in the market, making real estate an even more attractive asset class. We  see this as a significant opportunity for first-time buyers and investors looking to capitalize on a more favorable financial environment.”

Mr. Vivek Singhal, CEO, Smartworld Developers 

“The RBI's decision to cut the repo rate by 25 bps to 6.25% is a positive move for homebuyers and a much-needed relief, especially in premium markets like Delhi-NCR. Rising EMIs have impacted affordability, but this move will not only boost buyer confidence but also lower borrowing costs, enhancing predictability for long-term financial planning. Beyond benefiting homebuyers, it will sustain momentum in the real estate sector and support housing demand.”

Mr. Madhur Gupta, CEO Hero Realty 

 "The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a positive step for homebuyers and the real estate sector. Lower interest rates will make home loans more affordable, easing the financial burden on borrowers and boosting housing demand. This move is expected to drive sales, especially in the mid-income and affordable housing segments. We urge banks to swiftly pass on the benefits to customers, ensuring maximum impact on home affordability and market growth."

Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra

“The RBI’s decision to cut the repo rate by 25 basis points to 6.25% is a welcome step for the real estate sector, especially as this is the first reduction since February 2023. Lower home loan interest rates will provide much-needed relief to homebuyers, making property purchases more affordable by reducing EMIs. This move is expected to drive demand for housing, boosting market activity and encouraging more people to invest in real estate. It also enhances confidence among both buyers and developers, leading to a stronger and more dynamic sector. Developers will benefit from easier access to funds, helping them complete projects faster and meet the rising demand. At the same time, this decision aligns with the government’s focus on economic growth, supporting long-term stability in the housing sector. This rate cut is a much-needed push that will help both homebuyers and developers while driving positive momentum in real estate.“

Mr. Rajat Mehta, Director, ElitePro Infra

 "The awaited RBI MPC meeting announcement has arrived. The committee has announced a 25 basis point reduction to 6.25%. For homebuyers, it is a positive news, making it a lenient approach on the part of the committee. The reduction will make home loans and EMIs affordable. Homebuyers can also go for floating rate loans for more affordable housing."

Mr. Ashish Agarwal, Director, AU Real Estate 

“The RBI's decision to reduce the repo rate by 25 bps to 6.25% marks the first such reduction in five years. This is welcome news for the real estate sector, as it will make home loans more affordable, benefiting homebuyers and boosting demand. We anticipate this move will stimulate growth in the housing market, making it easier for individuals and families to realize their dream of owning a home."

Mr. Yashank Wason, Managing Director, Royal Green Realty 

"The RBI MPC meeting led by governor Sanjay Malhotra has announced a repo rate reduction of 25 basis points to a 6.25% cut The rate has remained unchanged since February 2023. The rate cut will benefit homebuyers, since there will be a reduction in interest rates on home loans, leading to affordability. Loan EMIs will also reduce, which will be beneficial to refinance existing home loans."

“The RBI’s decision to reduce the repo rate by 25 basis points to 6.25% is a significant step toward making home loans more affordable and boosting demand. This will benefit homebuyers, especially first-time buyers and those upgrading, by improving affordability and confidence in the market. Moreover, it will also support demand for premium and luxury housing. Overall, this move will drive growth, strengthen the real estate sector’s contribution to the economy, and support steady development across regions."

Mr. Mohit Agarwal, Business Head, Conscient Infrastructure Pvt. Ltd 

"The RBI’s decision to cut the repo rate by 25 bps to 6.25% is a welcome move for the premium real estate segment. After 11 consecutive rate holds, this reduction is expected to provide a much-needed boost to housing demand by making home loans more affordable. Lower borrowing costs will enhance affordability for luxury homebuyers and investors, boosting demand in high-end residential markets. This rate cut, coupled with the MPC’s neutral stance, signals stability, encouraging HNIs and NRIs to make strategic investments. We as a Developer may also benefit from reduced financing costs, enabling faster project execution. We anticipate renewed momentum in the luxury housing sector, especially in metro cities, as lower EMIs and attractive financing options drive buyer confidence."

Mr. Ashish Sharma, AVP Operations, Brahma Group

"We welcome the RBI’s decision to reduce the repo rate by 25 basis points to 6.25%, a significant step towards making home loans more affordable and stimulating demand in both residential and commercial real estate. In Gurgaon, this move will have a profound impact—lower EMI costs will make homeownership more accessible, driving renewed interest in the residential segment. Moreover, businesses will benefit from easier financing, fueling demand for premium office spaces. The reduction in borrowing costs will create a more favorable investment environment, reinforcing confidence among buyers and investors. Furthermore, this policy shift is set to accelerate growth and strengthen Gurgaon’s position as a key hub for real estate development and opportunities."

Mr. Manik Malik, CFO, BPTP 

“The revision in the repo rate by 25 basis points to 6.25% is a positive move for the economy, particularly for the real estate sector. This change in the policy rate is expected to ease borrowing costs, benefiting both developers and homebuyers. Developers will see financial relief through lower borrowing rates, enabling smoother project execution and keeping construction costs manageable. For homebuyers, this reduction in the repo rate translates into lower house loan EMIs, making homeownership more accessible. This could reignite buyer sentiment and boost demand in both the residential and commercial real estate markets. Overall, this timely intervention will support growth in the real estate sector, enhance investor confidence, and help maintain stability in property values. The move also aligns with the government’s broader efforts to encourage economic activity while ensuring fiscal discipline, and it offers a favorable outlook for both consumers and the industry at large.”

Way Forward 

The RBI’s decision to cut the repo rate to 6.25% is expected to encourage borrowing, investment, and housing demand while easing financing pressures on developers. For sustained growth, timely transmission of rate cuts by banks will be crucial. While the move provides relief, external factors such as global trade conditions and inflation will shape economic stability. Going forward, maintaining a balanced approach between growth and price stability will be key to ensuring long-term economic resilience.

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