The Reserve Bank of India’s recent 25-basis-point repo rate cut has set off a wave of reactions across the real estate landscape, with developers, investors, fund managers and brokerages calling it a well-timed intervention that could lift affordability, improve liquidity and strengthen market confidence. While the sector has seen robust demand over the past year, industry leaders say the policy move can further energise both buyers and developers as India heads into 2026.
A Boost to Affordability and Demand
Avneesh Sood, Director, Eros Group, said the rate cut “comes at an important time for the economy and the real estate sector.” He noted that lower borrowing costs should translate into more attractive home loan rates, especially with inflation at low levels and growth staying strong. According to him, faster transmission by banks could support new launches and accelerate the sector’s formalisation.
Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, described the policy move as well aligned with the current environment. He expects strong momentum in luxury housing to continue, helped by softer lending rates that enhance affordability for buyers seeking better design standards and long-term value.
Piyush Lohia, Director, Lohia Worldspace, said the decision “reinforces market stability” and brings clarity to both developers and homebuyers. He highlighted the potential impact on Tier-2 cities, where rising aspirations meet the need for affordable, quality housing.
Sentiment Strengthens, But A Pause Adds Nuance
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, pointed out that the MPC’s decision to hold the repo rate at 5.5 percent reflects caution ahead of the festive season. He said stable inflation and GST cuts are likely to lift consumer sentiment in the weeks ahead, reinforcing market confidence.
Investors Shift Strategy, AIFs Gain Momentum
Ankur Jalan, CEO, Golden Growth Fund, offered a different lens, looking at how lower rates affect depositors. He noted that declining returns on savings products may push affluent investors toward real estate-focused Category II AIFs, strengthening fundraising for such funds. A lower cost of capital, he added, improves project viability and widens opportunities for alternative investments.
Developers Expect Faster Execution and Stronger Liquidity
For many developers, the policy announcement comes at a time when demand is strong but cost pressures remain.
Lalit Parihar, MD, Aaiji Group, said the rate cut will make EMIs more affordable, strengthening sentiment across segments. He expects a surge in demand, supported by rising incomes and a preference for modern, well-planned homes.
Vijay Harsh Jha, Founder and CEO, VS Realtors, said the housing market has shown signs of a slowdown and that a 25-bps cut, if fully transmitted, would cushion buyers from rising prices and support purchases.
Ramani Sastri, Chairman & MD, Sterling Developers, described the move as “highly encouraging” for both buyers and developers. He emphasised the need for faster rate transmission, which he believes will sustain demand in a booming real estate cycle supported by strong macro fundamentals.
Mahendra Nagaraj, Vice President, M5 Mahendra Group, called the rate cut “a timely move” expected to improve purchasing power and fuel demand across premium and affordable housing. He also highlighted its impact on faster absorption of inventory and improved project planning.
Confidence Across Premium, Mid-Income and Emerging Markets
Parvinder Singh, CEO, Trident Realty, said the cut will ease EMI burdens and generate a healthy rise in enquiries and conversions. The overall confidence boost should encourage new launches, he added.
Shekhar Patel, President, CREDAI, said the move will strengthen sentiment, support credit growth and stimulate demand across sectors. With inflation at a decade-low, he expects housing momentum to remain strong.
Prashant Sharma, President, NAREDCO Maharashtra, noted that India is enjoying a “Goldilocks moment” of low inflation and strong growth. The rate cut, he said, will drive mid-income and premium demand, especially in Maharashtra.
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, said the cut provides a breather amid global uncertainty. Marginally lower EMIs will strengthen buyer confidence, especially among those waiting for a softer rate cycle.
Residential and Commercial Set for Growth
Shilpin Tater, Managing Director, Superb Realty, said the cut will benefit both residential and commercial segments. For first-time and young buyers, improved affordability could accelerate purchases. On the commercial side, lower capital costs improve expansion viability.
Shraddha Kedia-Agarwal, Director, Transcon Developers, highlighted the impact on metros like Mumbai, where even minor EMI relief improves affordability. She expects stronger sales in the luxury and upper-mid segments.
Ashish Jerath, President – Sales & Marketing, Smartworld Developers, said the combination of lower rates and strong GDP growth creates a supportive environment for a broad-based housing cycle. Young buyers and aspirational end-users, he noted, stand to benefit.
Sam Chopra, President & Country Head, eXp Realty India, said the cut reinforces confidence in India’s disinflation trajectory and economic resilience. It also complements GST rationalisation, creating structured momentum across metros and emerging submarkets.
A Market Poised for Continued Expansion
Amit Bhagat, Co-Founder, CEO and MD, ASK Property Fund, said a total 125 bps rate cut in 2025 is likely to benefit a housing market now stabilising after rapid growth. He expects demand to be supported by rising incomes, improving credit flow and the growing aspiration for upgrades and second homes.
Rohan Khatau, Director, CCI Projects, said the luxury segment continues to show strong preference among buyers. The rate cut arrives “at a very opportune time,” reinforcing confidence in premium and township-led developments, especially in Mumbai.
Together, these industry voices suggest a sector ready to build on its momentum. Affordable and premium buyers alike are expected to feel the impact, developers anticipate smoother liquidity, and investors see new avenues for returns. As growth stays strong and inflation remains low, the real estate industry believes the RBI has created the right runway for a more confident, broad-based cycle in the months ahead.
