In line with expectations, the RBI in its first MPC meeting after the Budget on Friday decided to reduce the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years, following a prolonged cycle of rate hike and stability triggered by global uncertainties. This came in the backdrop of easing inflation and moderation in growth prospects.

The Central Bank, however, maintained confidence on the robustness of domestic economy and projected the GDP growth rate at 6.7% in FY 2025-26. Welcoming the rate cut, realty experts and consultants said as housing demand had begun to stabilize after witnessing record sales in the last 2-3 years, this rate cut comes at an opportune time and will have a significant bearing on boosting homebuyer sentiments.

Aditya Kushwaha, CEO, Axis Ecorp, said the RBI decision to cut the repo rate signals a strategic move to stimulate economic growth while maintaining stability. This comes at a time when REITs, fractional ownership, and other innovative investment avenues have reignited investor interest in quality real estate.

“With luxury real estate continuing to thrive, driven by strong domestic demand and rising NRI investments, lower interest rates will further enhance affordability and confidence in the sector. This shift is also expected to encourage long-term capital inflows, strengthening forex reserves and reinforcing India’s position as a resilient and attractive market. As the investment landscape evolves, this policy change provides a timely boost, ensuring sustained momentum in the premium real estate segment,” Kushwaha added.