“The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25%—the first reduction in nearly five years—is a welcome move that signals confidence in India’s economic trajectory. Coupled with the Union Budget’s middle-class-friendly policies, this step will encourage consumer spending, improve economic sentiment, and provide a much-needed boost to the real estate sector. A lower interest rate regime enhances home affordability and stimulates demand, particularly in the mid-income and affordable housing segments.
However, the real impact will be felt only if banks swiftly pass on these benefits to borrowers through reduced home loan interest rates. This will not only empower aspiring homebuyers but also support the government’s vision of ‘Housing for All’ and accelerate overall growth in the real estate sector.”
Shares Rohit Gera, Managing Director, Gera Developments
