Repo Rate Cut Spurs Optimism in Real Estate Market

The RBI's decision to cut the repo rate is expected to boost housing sales, particularly in units under Rs 1 crore. Industry leaders see potential for enhanced demand and improved lending conditions, despite earlier declines in sales attributed to high costs and economic uncertainties.

The Reserve Bank of India's recent announcement to slash the repo rate has sparked optimism among real estate developers. Industry leaders forecast a rise in housing sales, especially for homes priced below Rs 1 crore, as this monetary policy shift is likely to lead to lower home loan interest rates.

The apex bodies of realtors, CREDAI and NAREDCO, have praised the RBI's decision, highlighting that lower rates will spur demand in the mid-income and affordable housing segments. Key figures in the industry emphasize that the reduced interest rates will not only boost residential sales but also help alleviate issues of unsold inventory.

Data from PropEquity and Anarock revealed a notable decline in housing sales during the first quarter of 2025. However, developers are optimistic that the new policy direction, combined with recent tax benefits, will improve affordability and stimulate market activity, thereby benefiting both homebuyers and the broader real estate sector alike.

(With inputs from agencies.)