After a long break, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decides to reduce the rate of replenishment by 25 base points – providing a long -awaited recovery to the country’s real estate agents. As the MPC announced the rate of replenishment at 6.25%, after having held it at 6.5% for several quarters, stakeholders in the real estate sector applauded this decision – anticipating an increase in the demand for residential houses in the coming months.
According to Venkatesh Gopalakrishnan, promoter office of the group of director, MD – Shapoorji Pallonji Real Estate, this decision will give a “significant boost” to the real estate sector, in particular for affordable housing and half -segment.
“We congratulate the RBI for its proactive decision to reduce the repo rate, marking an essential decision after almost five years. The drop in borrowing costs will further improve the affordability of real estate loans, which brings the dream closer to ownership for many budding buyers, “said Gopalakrishnan, adding that” the decision is likely to regenerate investments In the real estate sector, offering the essential motivation to support its growth. We are optimistic that this drop in rate will positively influence the feeling of the market, will strengthen buyers’ confidence and catalyze long -term growth in all industry segments. »»
Pradeep Aggarwal, founder and president of Global Signature (India), said that the RBI movement signals a pro-growth change aimed at maintaining the economic time of India, because this decision will improve liquidity, encourage investments and stimulate demand between key sectors.
“For real estate, a drop in rate after such a long period is a significant boost. The drop in borrowing costs will improve the affordability of houses, strengthening the feeling of buyers, especially in median and premium income housing segments. Historically, reduced interest rates have triggered an increase in housing demand, benefiting both buyers and developers. In addition, improving credit access will help developers obtain funding for the execution of the project, to guarantee a stable offer and deliveries in a timely manner, ”explains Aggarwal.
Real estate agent Niranjan Hiranandani, president of Naredco, believes that this long -awaited and strategic decision was made “at a crucial time”.
“This ensures that despite external geopolitical uncertainties, our internal economic climate maintains effective markets and requires solid. Combined with the tax advantages announced in the budget for financial year 26 for the middle class, this change in policy will increase the speed of sale, “he said.
According to Dhruv Agarwala, CEO of the Housing.com group & Protiger.com, the reduction in key policy rate, the first in five years, will lower real estate loans interest, benefiting both potential buyers and borrowers existing.
“The drop in rates will play a crucial role in improving the affordability of housing in the most populous country in the world, supplementing the measures announced in the Union budget recently revealed 2025. In addition, reduction of the rate De REPO, as well as the reduction announced previously of the CRR, improve the liquidity of developers, which has a positive impact on new power supplies and accelerate supplements of the project, “he said.
Sector experts such as Vimal Nadar, Research Manager at Colliers India, according to rate reduction, associated with recent budgetary announcements linked to the creation of the Urban Challenge fund and tax loss in the new regime, are likely to stimulate growth urban and improve domestic consumption. A disposable income and a drop in financing costs are high for the benefit of house buyers and developers.
“In addition, the recent allocation of RS 15,000 crores for the Swamih II fund is likely to accelerate the completion of stressed projects, stimulate liquidity and stimulate feelings of purchase of houses. Overall, obvious tail winds should increase real estate demand through asset classes in the coming quarters, ”explains Nadar.
