+
RBI Rate Cut Brings Relief as Buyer Sentiment Dips: Magicbricks
ECONOMY & POLICY

RBI Rate Cut Brings Relief as Buyer Sentiment Dips: Magicbricks

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.

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.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?