Industry Experts React to RBI’s 25 bps Repo Rate Cut: Implications for Real Estate and Lending

Industry Reactions on RBI’s Latest Monetary Policy and Its Impact on Real Estate and Lending Ecosystem

The Reserve Bank of India (RBI) has announced a 25 basis points cut in the repo rate, bringing it down to 6%, while also shifting its monetary policy stance from ‘Neutral’ to ‘Accommodative’. This move, aimed at boosting domestic consumption and supporting economic growth amid global uncertainties, has garnered significant responses from leaders across the real estate and financial sectors.

Shrinivas Rao, FRICS, CEO, Vestian, stated,

“The 25 bps repo rate cut aligns with the current market outlook, especially as inflation has remained within RBI’s tolerance band due to falling food prices. With fears of a global recession and trade frictions, this cut is timely. The accommodative stance also signals future rate cuts, which will positively impact mortgage rates and drive real estate demand.”

Vimal Nadar, Head of Research, Colliers India, shared,

“In its first MPC meeting for FY 2025-26, RBI’s rate cut reflects a growth-oriented approach, especially in light of rising global uncertainties. A projected GDP growth of 6.5% and easing inflation could spur consumer spending. The move is expected to boost housing demand, particularly in affordable and mid-income segments, while also reducing financing costs for developers. Additionally, RBI’s proposal to securitize stressed assets offers a ray of hope for stalled real estate projects.”

Amit Goyal, MD, India Sotheby’s International Realty, said,

“This repo rate cut comes as a stabilizing force amid global economic challenges. Lower borrowing costs and enhanced liquidity can uplift corporate investments and consumer sentiment. If banks pass on the benefits, it will further stimulate the housing sector.”

Piyush Bothra, Co-Founder & CFO, Square Yards, commented,

“RBI’s second consecutive repo rate cut is a welcome move. It lowers EMIs and improves affordability, especially as property prices rise. This will empower end-users and fuel liquidity for developers to push ahead with project execution.”

Amit Prakash Singh, Co-Founder & Chief Business Officer, Urban Money, remarked,

“This decision is a strong signal to enhance credit availability across sectors. With lower EMIs and easier access to funds, it will encourage both borrowers and lenders. This environment promotes aggressive credit expansion and supports overall economic liquidity.”

As the real estate and lending industries adjust to the new repo rate and policy stance, the overall sentiment remains optimistic with expectations of further growth and stability.

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This article is based on a press release submitted by Slough PR.

Abhishek Uparkar (9804555523)