RBI’s Rate Cut: A Boon for Real Estate

10 Feb 2025 CW Team

Boost for Housing Demand

Industry leaders view the rate cut as a step towards making home loans more affordable. According to Niranjan Hiranandani, CMD of Hiranandani Group, ""The reduction in the repo rate by 25 basis points is a welcome step, enhancing affordability for homebuyers and boosting housing demand."" He emphasised that lower home loan rates will benefit the entire real estate ecosystem, making it an opportune moment for prospective buyers.

This sentiment is echoed by J C Sharma, VC & MD of Sobha Ltd, who noted, ""The rate cut will help homebuyers as it reduces borrowing costs, thereby improving affordability and demand for housing."" Lower interest rates have historically spurred demand in the residential segment, encouraging fence-sitters to make purchase decisions.

Industry Optimism on Liquidity and Growth

The move is expected to ease liquidity concerns and drive economic growth, according to Anshuman Magazine, Chairman & CEO, CBRE India, South East Asia, Middle East & Africa. ""The RBI's decision to cut the repo rate will have a positive impact on economic growth and will boost investor sentiment, particularly in real estate,"" he said.

Similarly, Shishir Baijal, Chairman & MD of Knight Frank India, observed, ""This rate cut is expected to revive housing sales momentum, particularly in the affordable and mid-segment categories. Lower EMIs will encourage more homebuyers to enter the market.""

Developers Hope for Further Reforms

While the rate cut is seen as a positive development, some experts believe additional measures are necessary to sustain long-term growth. Pankaj Bajaj, MD, Eldeco Group, stated, ""While the rate cut is good news, we hope that banks will pass on the benefits to consumers swiftly. Additionally, more structural reforms are required to ensure sustained growth in the real estate sector.""

With lower borrowing costs, improved affordability, and a potential uptick in housing demand, the real estate sector stands to benefit significantly from the RBI's decision. However, industry leaders emphasise that policy continuity and further reforms will be key to ensuring sustained momentum in the sector.

Photo: Freepik

The Reserve Bank of India’s decision to cut the repo rate by 25 basis points has been met with optimism by industry experts, particularly in the real estate sector. The move is expected to boost affordability for homebuyers and improve liquidity in the market.Boost for Housing DemandIndustry leaders view the rate cut as a step towards making home loans more affordable. According to Niranjan Hiranandani, CMD of Hiranandani Group, The reduction in the repo rate by 25 basis points is a welcome step, enhancing affordability for homebuyers and boosting housing demand. He emphasised that lower home loan rates will benefit the entire real estate ecosystem, making it an opportune moment for prospective buyers.This sentiment is echoed by J C Sharma, VC & MD of Sobha Ltd, who noted, The rate cut will help homebuyers as it reduces borrowing costs, thereby improving affordability and demand for housing. Lower interest rates have historically spurred demand in the residential segment, encouraging fence-sitters to make purchase decisions.Industry Optimism on Liquidity and GrowthThe move is expected to ease liquidity concerns and drive economic growth, according to Anshuman Magazine, Chairman & CEO, CBRE India, South East Asia, Middle East & Africa. The RBI's decision to cut the repo rate will have a positive impact on economic growth and will boost investor sentiment, particularly in real estate, he said.Similarly, Shishir Baijal, Chairman & MD of Knight Frank India, observed, This rate cut is expected to revive housing sales momentum, particularly in the affordable and mid-segment categories. Lower EMIs will encourage more homebuyers to enter the market.Developers Hope for Further ReformsWhile the rate cut is seen as a positive development, some experts believe additional measures are necessary to sustain long-term growth. Pankaj Bajaj, MD, Eldeco Group, stated, While the rate cut is good news, we hope that banks will pass on the benefits to consumers swiftly. Additionally, more structural reforms are required to ensure sustained growth in the real estate sector.With lower borrowing costs, improved affordability, and a potential uptick in housing demand, the real estate sector stands to benefit significantly from the RBI's decision. However, industry leaders emphasise that policy continuity and further reforms will be key to ensuring sustained momentum in the sector.Photo: Freepik

Infrastructure Urban

31 Jul 2026

SCLR Extension Nears Completion Linking BKC With Signal-Free Route

The Santacruz-Chembur Link Road (SCLR) extension towards Bandra-Kurla Complex (BKC) via the Mumbai University campus has entered its final stage, bringing motorists closer to a direct, signal-free connection between the Western Express Highway and the city’s commercial district. The elevated connector is being built as an arm from the SCLR alignment and will link the western suburbs with BKC without surface signals. The link is designed to reduce journey times for commuters travelling from the western suburbs to BKC and to improve access to eastern Mumbai. By carrying through traffic above s..

Infrastructure Transport

31 Jul 2026

Raiganj MP Seeks Bengal Only Highway Link To Siliguri

Raiganj Member of Parliament Kartik Chandra Paul met Union Minister for Road Transport and Highways Nitin Gadkari in New Delhi to press for a new stretch of national highway in North Dinajpur district. He urged approval for a Bengal-to-Bengal link that would connect National Highways 12 and 27 to allow vehicles bound for Siliguri to avoid the current route through Kishanganj in neighbouring Bihar. He also submitted a proposed alignment of the new road to the ministry for consideration. At present vehicles from Raiganj travel along NH-12 and join NH-27 at Purnia More in Dalkhola, a route that p..

Infrastructure Transport

31 Jul 2026

Airport Kilambakkam Metro Line To Be Extended To Chengalpattu

Chennai Metro Rail (CMRL) has invited tenders for two detailed project reports that would extend its rail network to Chengalpattu in the south and extend Corridor-5 to Wimco Nagar in the north as part of a second wave of expansion beyond the operator's corridors under construction. The move signals an acceleration of planning for suburban links and interchange nodes. The larger of the two studies covers a roughly 27km extension from the planned Kilambakkam metro station to Chengalpattu under Corridor-1, Phase I. CMRL floated the tender at an estimated cost of Rs 21.6 mn. The proposed line woul..