Real Estate players anticipate strong close to financial year as RBI slashes repo rate

New Delhi [India], December 5 : Real Estate players have anticipated strengthening of the positive market sentiment by the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) move to slash the repo rate by 25 basis points to 5.25%.

With the cut in repo rate, which will eventually lead to lowering down the lending rates by the banks and the Housing Finance Companies, it will make home loans more affordable, supporting homebuyers and strengthening the housing demand.

Shekhar Patel, President of Confederation of Real Estate Developers' Associations of India (CREDAI) said RBI's move will further strengthen positive market sentiment, lower borrowing costs, support credit growth, and stimulate demand across sectorsincluding real estate.

"As liquidity is no longer a key concern for the central bank, CREDAI anticipates a strong close to the financial year and sustained momentum in housing demand across all segments," he added.

Parveen Jain, President, NAREDCO National Real Estate Development Council said, "For real estate, lower interest rates make home loans more affordable, which supports homebuyers and strengthens demand. The positive impact will extend to allied industries as well, helping generate more employment."

"In Tier 2 and Tier 3 cities, this move can further boost interest among both developers and buyers. Overall, the cut provides additional support to the broader economic recovery," Jain added.

Real Estate companies also showed optimism towards the move calling it as an encouragement for the cautious buyers to make their purchase decisions.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. said, "The real estate sector has remained on a steady growth trajectory, as the prior cumulative repo-rate reduction of 100 bps by the RBI, coupled with income-tax relief given in the Union Budget and GST rate rationalisation earlier this year, has not only made home loans cheaper but has also significantly improved overall affordability for homebuyers."

"This latest rate cut is expected to further strengthen market sentiment, enhance purchasing power, and support continued growth in housing demand across key segments, keeping real estate a preferred long-term asset class," he added.

Jash Panchamia, Executive Director, Jaypee Infratech Limited said, "The housing sector, particularly affordable and mid-segment housing, stands to benefit as lower home loan rates are likely to encourage cautious buyers to make their purchase decisions."

"Consequently, this could create a positive ripple effect, driving demand for quality homes and further strengthening market activity, while supporting investment sentiment and fostering long-term confidence in the real estate ecosystem," he added.

Chief Financial & Risk Officer at Bombay Dyeing (Bombay Realty) Khiroda Jena said, "For homebuyers, especially in high-commitment markets like Mumbai, even a marginal reduction in lending rates improves EMIs, enhances affordability, and strengthens purchasing confidence.

Coupled with the recent GST rationalisation, the cost framework for end users is now more conducive to faster decision-making. From an industry standpoint, lower rates ease developers' borrowing costs, improve liquidity cycles, and support more efficient capital deploymentcritical at a time when project pipelines are expanding."

Mohit Goel, Managing Director of Omaxe Ltd. said, "The move comes at a particularly important moment for the mid-segment where affordability plays a defining role. The mid-income category has been the backbone of residential demand through 2024 and 2025, and this policy move strengthens that foundation further."

"A lower cost of credit has the power to unlock the next wave of housing momentum. With 2025 shaping up as a year of steady demand, improved supply pipelines, and clearer policy direction, this rate cut adds to the confidence that the real estate market is entering a more balanced, expansionary phase that can sustain itself well into the future," Goel added.

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