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The Reserve Bank of India (RBI) announced a 25-basis point (bps) cut in the repo rate, bringing it down to 6 per cent. This move aims to address growth concerns amid a challenging global economic environment. This marks the second consecutive rate cut by the central bank this year.
While the rate cut was widely anticipated due to moderating inflation, its impact on the real estate sector could be significant, provided banks pass on the benefits to borrowers. The real estate leaders welcome the move.
Dr Niranjan Hiranandani, Chairman of NAREDCO, lauded the Reserve Bank of India’s decision to cut the repo rate to 6.00%, calling it a timely and strategic move to drive economic growth while ensuring macroeconomic stability.
Anuj Puri, Chairman - ANAROCK Group stated, “RBI’s decision to reduce the repo rates by 25 bps (to 6%) second time this year was expected to the backdrop of moderating inflation. Home loan borrowers may not see much meaningful or immediate interest rate relief. Banks have not transmitted earlier MPC rate cuts to borrowers because of higher funding costs, pressure on net interest margins, higher NPAs, and a cautious lending climate. If banks do pass on the benefits of the last two rates cuts, it will be a boost to homebuyers, particularly for those eyeing affordable housing.”
Domnic Romell, President of CREDAI-MCHI, has expressed his support, calling it a positive move for the real estate sector, particularly in the affordable housing segment. Romell highlighted that this rate cut would reduce home loan interest rates, making it more affordable for people to purchase homes.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, has expressed strong support for the RBI's decision to reduce the repo rate, calling it a crucial move for the economy in light of ongoing global challenges such as tariff concerns and geopolitical tensions.
