RBI’s Second Consecutive Rate Cut Brings Hope for Homebuyers, Developers Alike

In a move that signals continued support to revive economic momentum, the Reserve Bank of India (RBI) on April 9 slashed the repo rate by 25 basis points, bringing it down to 6%. This is the second successive cut by the central bank, following a similar 25 bps reduction in February.

The back-to-back easing of the key policy rate is expected to bring cheer to the real estate sector, particularly the residential segment. For aspiring homeowners—especially first-time buyers—this move enhances affordability, provided lending institutions transmit the benefit of the rate cut through lower interest rates on home loans. Developers, too, stand to gain. With funding remaining a concern, especially for under-construction projects, a dip in borrowing costs can ease liquidity pressures and accelerate project deliveries.

While the sector cautiously welcomes the RBI’s latest move, experts reiterate that the transmission of benefits and continued policy support will be key to sustained revival.

Mr. Prashant Sharma, President, NAREDCO Maharashtra
“The RBI’s decision to reduce the repo rate by 25 basis points to 6% comes as a welcome and timely move for the Indian economy. At a time when global headwinds and tariff concerns loom large, the accommodative stance by the MPC will serve as a much-needed catalyst to revive consumption and investment cycles. For the real estate sector, this signals increased affordability for homebuyers and improved liquidity conditions for developers. It will directly impact housing demand, particularly in the affordable and mid-income segments, and will boost sentiments in the real estate sector. This policy stance will further encourage transparency and trust, essential for sustainable sectoral growth.”

Mr. Nishant Deshmukh, Founder and Managing Partner, Sugee Group
“The recent repo rate cut by the RBI signals a proactive stance to stimulate growth and investment, particularly in the real estate sector. Reduced lending rates are expected to enhance home affordability, encouraging aspiring buyers to take that crucial step towards homeownership. For developers, improved access to capital will aid project execution and timely delivery. However, the real impact of this move will hinge on how swiftly and effectively commercial banks pass on the benefits to end consumers.”

Mr. Samyak Jain, Director, Siddha Group
“The RBI’s policy move is a strong signal of its commitment to support growth while leveraging the benign inflationary backdrop. It comes at an opportune moment, especially as we look to maintain the momentum in home sales post Gudi Padwa. For the real estate sector, a reduction in interest rates enhances affordability, which is the cornerstone of sales revival. Especially in metro cities like Mumbai, this policy stance will help attract fence-sitters and first-time buyers. Lower interest rates will not only encourage new buyers but also aid existing homeowners in managing EMIs better.”

Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers
“A rate cut in a controlled inflation environment is a strategic push towards economic revival. Lower interest rates make home loans more attractive and affordable, especially in metros like Mumbai where ticket sizes are higher. This move will act as a catalyst to improve buyer sentiment, accelerate decision-making, and will go a long way in supporting the real estate sector’s momentum, particularly for end-user driven and premium housing segments. It also reaffirms the RBI’s supportive approach towards economic revival through a healthy credit ecosystem.”