As the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) prepares to meet from April 7-9, 2025, the real estate sector is keenly awaiting a potential repo rate cut. Experts anticipate the RBI may lower the rate by 25 basis points, bringing it down to 6%. This move is expected to stimulate economic growth and increase borrowing, particularly in the housing market.
Industry leaders emphasize that the success of this rate cut depends on how swiftly and effectively commercial banks pass on the reduced rates to borrowers. A faster transmission would likely drive demand for home loans, benefiting the real estate sector.
Mr. Pradeep Aggarwal, Chairman of Signature Global, explained that a lower repo rate would encourage more people to invest in homes. Similarly, Mr. Ashok Kapur, Chairman of Krishna Group, highlighted that the cut would make home loans more affordable, boosting sales in the housing market.
Experts, including Mr. Udit Jain from ONE Group Developers, believe that reduced interest rates would make homeownership more accessible to a broader group of buyers, from first-time homeowners to upgraders. Mr. Sahil Agarwal, CEO of Nimbus Developers, noted that a repo rate cut would also benefit the luxury real estate segment.
Mr. Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, expects further rate cuts to continue, with the cumulative reduction likely to be around 0.75% by June. This would significantly lower borrowing costs, improving home loan affordability for consumers.
