The Reserve Bank of India’s Monetary Policy Committee (MPC) began its August meeting on 4th, with the final decision expected on August 6. While the central bank has already cut interest rates by 100 basis points this year, the real estate sector is watching closely for signs of further easing—especially as US tariffs on Indian goods threaten to dampen growth.
Industry experts say a 25-basis-point rate cut could inject fresh momentum into the housing market, particularly ahead of the festive season. Lower repo rates typically translate into cheaper home loans, improving affordability and nudging fence-sitters toward purchase decisions. Pradeep Aggarwal of Signature Global noted that many banks are already offering rates below 8%, and a further cut could accelerate buyer activity.
Retail inflation, which fell to 2.1% in June and may dip to 1.5% in July, gives the RBI room to act. SBI’s report suggests that a front-loaded rate cut now could mirror past trends, where pre-Diwali easing led to a surge in credit demand. However, some analysts caution that the RBI may prefer to hold steady, allowing previous cuts to fully transmit through the economy.
Still, the mood in real estate remains cautiously optimistic. Developers are banking on continued policy support to sustain buyer sentiment, especially in mid-income and affordable segments. With inflation under control and liquidity ample, the sector sees this MPC meet as a potential turning point—either through direct rate action or a dovish signal that keeps housing demand buoyant.
Whether the RBI delivers a cut or not, its stance will shape the next phase of real estate growth, as the industry balances festive optimism with global uncertainty.
