New Delhi, August 5: As the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) prepares for its upcoming bi-monthly review, the real estate sector remains optimistic and is hoping for another repo rate cut to sustain its current growth momentum.
After benefiting from a cumulative 100 basis points (1%) reduction in the repo rate since February 2025, the sector has seen a revival in housing demand, improved buyer sentiment, and enhanced affordability across markets. Industry leaders are now hopeful that the RBI may opt for a fourth consecutive rate cut, potentially bringing down the repo rate by another 25 basis points, further fuelling growth.
Sector Leaders Expect Continued Policy Support
Mr. Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd., believes that with inflation below RBI’s target, there is scope for an additional rate cut.
“A 25-bps cut would further boost the real estate market, bringing the repo rate down by 125 bps in a year. With banks already offering sub-8% loans, this will encourage more end-users to purchase homes,” he said.
“Even if rates remain unchanged, the current low-rate regime is already supporting demand,” he added.
Mr. Jash Panchamia, Executive Director, Jaypee Infratech Ltd., echoed this view, noting that with inflation at a six-year low, a rate cut would strengthen the overall economy and further raise buyer confidence.
“The sector has already benefited from the past three cuts. Another reduction would support end-users and first-time buyers, making homeownership more accessible,” he said.
Mr. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, highlighted the impact of reduced borrowing costs on housing demand.
“Lower home loan rates have significantly improved affordability. A further cut will support demand across all segments and keep the momentum going,” he noted.
Festive Season May Amplify Rate Cut Benefits
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd., pointed out that while an aggressive cut may not be on the cards, a modest 25-bps reduction is likely, especially with the festive season approaching.
“It would help boost retail borrowing and drive consumer spending—both of which are crucial during the festive period,” he said.
Mr. Vikas Bhasin, MD of Saya Group, expressed confidence that the RBI will continue the rate cut cycle, which has already made a tangible impact on home loan affordability.
“Another cut of 25–50 bps would further enhance loan eligibility and stimulate demand across affordable to luxury housing segments,” he noted.
Mr. Sushil Bedarwal, CMD of Bedarwal Group, emphasised the importance of prompt transmission of rate cuts by banks.
“Lower rates are crucial for end-users in affordable and mid-income categories. We hope banks will swiftly pass on the benefits, helping many buyers move closer to owning a home,” he said.
Outlook: Sector Ready for Growth, Awaits Policy Direction
The overall sentiment in the real estate sector remains positive, with stakeholders aligning their expectations around a supportive monetary stance. Whether the RBI cuts the repo rate or maintains the status quo, the sector seems well-positioned to benefit from an environment of low interest rates, stable inflation, and improving consumer confidence.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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