In a timely move offering respite to homebuyers, the Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points—from 6.25% to 6%—a policy shift expected to lower lending rates and ease financial pressures on aspiring homeowners. The cut arrives amid a cooling in housing sentiment across Indian metros. According to the latest Housing Sentiment Index from Magicbricks, which surveyed 1,950 serious homebuyers, the index fell from a bullish 156 in July 2024 to 138 in March 2025, indicating a moderate decline in buyer confidence. The revised lending rate could translate into tangible savings—up to Rs 1,250 per month on EMIs for a ?80 lakh home loan over 20 years—providing much-needed relief amidst rising property prices and inflationary headwinds. Data from Magicbricks shows a marginal 0.6% quarter-on-quarter increase in residential demand across major cities during Q1 2025 (January–March), while prices surged 2.8% in the same period. This mismatch between demand and pricing is fuelling caution among prospective buyers. Gurugram recorded the most significant decline in buyer sentiment, with its index falling by 33 points. This corresponds with a sharp 31.4% year-on-year rise in residential property prices—now averaging ?15,607 per sq. ft.—as highlighted in Magicbricks’ PropIndex for Q1 2025. Other key markets such as Mumbai (148), Delhi (138), and Bengaluru (148) also reported subdued buyer confidence. Conversely, cities like Ahmedabad (157), Kolkata (149), Hyderabad (146), and Chennai (147) saw the highest levels of buyer optimism. These markets remain relatively affordable, with average prices at ?6,179 psf in Ahmedabad, ?8,106 psf in Kolkata, and ?8,770 psf in Hyderabad—each showing steady quarter-on-quarter appreciation. The report also uncovered a growing reluctance to transact in the near term: 58% of respondents now plan to defer their home purchase, a significant rise from 43% in 2024. This is largely attributed to the shift in new supply from the affordable to the premium and luxury segments, reducing access to cost-effective housing options for end-users. As the market grapples with affordability challenges and shifting supply dynamics, the RBI’s rate cut offers timely encouragement. Whether this will be enough to reignite buyer momentum in the coming quarters remains to be seen.