The Reserve Bank of India’s Monetary Policy Committee (MPC) begins its three-day meeting today to deliberate on the future of the repo rate. Given the prevailing inflation trends and global economic conditions, analysts believe that the RBI will maintain the status quo to ensure financial stability.
This decision holds significant implications for domestic lending rates, making it a focal point for businesses and the general public alike. As borrowing costs influence both consumer spending and corporate investments, the MPC’s announcement will be closely watched for its potential ripple effects across the economy.
Manoj Gaur, CMD of Gaur Group and President of CREDAI NCR, states that if the RBI maintains the status quo on the repo rate, it will be encouraging for the real estate sector. It will signal stability in the market and boost confidence among both buyers and developers. The RBI is hinting at a potential rate cut in the future, which could provide relief to home buyers. However, the affordable housing segment remains a concern, and we hope the RBI will pay greater attention to this area.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. says, “As the Reserve Bank of India prepares for its upcoming policy review, its steadfast approach to maintaining the repo rate at 6.5% since February 2023 has provided much-needed stability amid global uncertainties. While inflationary pressures persist, India’s standing as the fastest-growing major economy highlights its resilience and potential for sustained growth.
For the real estate sector, this stability in monetary policy has bolstered consumer confidence and provided favourable conditions for investments. As we look ahead, any potential easing of interest rates could further stimulate demand, creating new opportunities for growth and reinforcing the sector’s vital role in driving India’s economic progress.”
Amit Modi, Director of County Group, says, “We are focusing on the possibility of a reduction in interest rates in the December quarter. This would be long-awaited news for the real estate sector. While its impact may not be significant on luxury housing, it could prove to be a big step for the sector as a whole. Particularly for the affordable housing segment, it could act as a renewed stimulus, strengthening this segment once again.”
Sanjay Sharma, Director of SKA Group, stated that this decision is significant not only for the real estate sector but also for homebuyers across the country. When the repo rate decreases, home loan interest rates also drop, making the process of buying a home more affordable and accessible. This step, particularly in the affordable housing segment, can boost demand as more people will be encouraged to buy homes. This will not only strengthen buyers’ confidence but also accelerate the growth of the real estate sector.
Rajjath Goel, Managing Director, MRG Group, said, “The remarkable 32% surge in housing prices in Delhi-NCR highlights the region’s emergence as a premier real estate hub, fueled by large-scale infrastructure projects like the Dwarka Expressway and evolving buyer sophistication. This price appreciation is not merely a reflection of increased demand but a testament to the shift towards value-driven investments in urban peripheries. As developers, our challenge is to deliver not just luxury, but future-proof developments that cater to discerning buyers seeking long-term capital appreciation, connectivity, and quality of life.”
Dr. Gautam Kanodia Founder KREEVA and Kanodia group, said, “”The real estate sector is booming with an all-time high growth number backed by a surge in housing demand. Hence, looking at the RBI’s upcoming policy announcement, we anticipate that there might be a reduction in the repo rate. Lower interest rates would act as a catalyst for encouraging people planning to take home loans. Such a move would further strengthen the housing demand across cities, especially in the emerging and new micro-markets. “
Saurabh Saharan, Group Managing Director of HCBS Development, said, “One of the key drivers behind the growth of the real estate sector in the past has been the supportive policies of the RBI. The unchanged repo rate for close to two years has ensured stability in the market. Looking ahead, we are hopeful that the RBI may decide to reduce the repo rate this time. Should this happen, home loan interest rates will likely decrease, not only easing the EMI burden on homebuyers but also encouraging homebuyers sitting at the fence to make the move. This, in turn, will further stimulate the real estate market. The immediate benefit of this rate reduction will be felt by buyers, developers and investors, decreasing the cost of servicing loans.”
Ravindra Gandhi, Managing Director of Tirasya Estates stated the real estate sector has witnessed significant growth over the past two years. A major reason for this is the positive stance adopted by the RBI’s Monetary Committee towards this sector. The lack of changes in the repo rate for over a year has increased the interest of both investors and homebuyers in real estate, not only in major cities but also in Tier-2 cities like Goa, Lucknow, Dehradun, and Chandigarh. This time as well, it is expected that the RBI might reduce the rates or keep them steady. This would directly boost the real estate sector and ensure that homebuyers and investors do not see an increase in their home loan EMIs, providing direct benefits to them.
Piyush Kansal, Executive Director of Royale Estate Group, says that the real estate sector has seen consistent improvement and growth over the past two years. The main reason for this is the positive approach adopted by the RBI towards the sector. With no changes in the repo rate for over a year, interest from investors and home buyers has increased not only in major cities but also in smaller towns. In such a scenario, if the RBI reduces rates or keeps them stable on December 6, it will directly benefit the real estate sector. This will provide relief to home buyers and investors on EMIs, leading to even greater enthusiasm in their purchasing decisions.
Ashwani Kumar, Pyramid Infratech, said,”RBI’s upcoming policy announcement is highly anticipated by the real estate sector as it expects a potential cut in the repo rate. The reduction in the repo rate will boost homebuyer’s sentiment as it will directly lead to lower EMIs thus encouraging fence-sitters to invest. Besides, for developers, favourable lending rates would also enable enhancing the market liquidity in the system. Therefore, we expect that the announcement will be in line to foster the economic stability of the realty market.”
Sanchit Bhutani, MD, Group 108 said, If the RBI announces a reduction in the REPO rate, it would act as a catalyst for promoting growth. This would further lead to rise in demand and rapid development in the Real Estate sector. This would also create opportunities for the investors and end-users creating a positive market environment and paving the way for long term stability and growth.
Manit Sethi, Director, Excentia Infra, says that the reduction in the repo rate by the RBI will accelerate the country’s growth and infrastructure development. Moreover, the stability will benefit stakeholders in the real estate sector and encourage real estate growth in metro cities as well as Tier 2 and 3 cities.
Raheja Developers’ Vice President, Mohit Kalia, stated that the reduction in the repo rate will prove to be a significant positive step for the real estate sector. It will provide relief to homebuyers from rising loan interest rates, encouraging them to invest. At a time when real estate prices are experiencing fluctuations, a reduction in interest rates will bring stability to the market. This move will not only ease the burden of EMIs on buyers but also boost their confidence in making decisions. It will attract investors as well and bring long-term positive changes to the real estate sector. This stability will increase market demand, benefiting not only developers but also strengthening India’s economy.
Harsh Gupta, CEO of SunDream Group, stated that a repo rate cut by the Reserve Bank of India (RBI) could prove to be a very positive step for the real estate sector. It would benefit homebuyers by providing them with lower interest rates, making their purchasing decisions easier. This would not only boost buyers’ confidence but also promote new investments and development in the affordable housing sector, making it more attractive.
Ambika Saxena, Director, Corporate Communications, Bayside Corporations said, “The RBI’s decision to maintain the repo rate is expected, given the need for economic stability amidst global uncertainties. However, as inflationary pressures ease, a rate cut could provide a timely boost to economic growth, especially in sectors like real estate and infrastructure. Businesses should stay agile, leveraging this period to plan for a potential easing of financial conditions.”
Nandni Garg, Director, Rajdarbar Ventures said, “Repo rate decisions play a crucial role in shaping the future of the real estate sector. A reduction in the repo rate by RBI would lower borrowing costs, making homeownership more accessible and driving new investment into the market. This positive momentum would not only uplift buyer sentiment but also strengthen the sector’s contribution to economic growth. Stability or a potential rate cut ensures that the real estate landscape remains resilient and growth-oriented.”
Neeraj Sharma, MD, Escon Infra Realtor said, “The real estate industry keeps a keen eye on repo rate announcements, as changes by the RBI can greatly influence market conditions. A rate cut could reduce borrowing costs, encouraging homebuyers and attracting investments, ultimately fueling long-term growth. On the other hand, maintaining the existing rate promotes stability, which is essential for fostering consumer confidence and ensuring steady market performance.”
Saurav Sharma, Director of Sales, Trisol RED said, “The real estate sector thrives on stability, and the RBI’s consistent monetary policy has laid a strong foundation for consumer confidence. A reduction in the repo rate could provide a significant boost, making homeownership more accessible and stimulating investment opportunities. This move would accelerate market activity, benefiting end-users and investors alike while reinforcing real estate’s role as a driver of economic growth and stability.”
Ajendra Singh, Vice President of Sales and Marketing at Spectrum Metro, believes that the reduction in the repo rate is good news for economic stability. However, considering inflationary pressures, he expects further rate cuts. If the RBI reduces rates this time, it will boost the real estate sector. Investor enthusiasm will increase, leading to investments in commercial, retail, and residential real estate, which will result in growth in the sector.
Kushagra Ansal, Director, Ansal Housing, said, “The real estate sector stands at a crucial point where a potential repo rate reduction could be a game-changer. It would not only lighten the financial load for homebuyers but also inject fresh momentum into the market, stimulating demand and attracting long-term investments. This move could drive sustainable growth, benefiting the broader economy.”
Raheja Developers’ Vice President, Mohit Kalia, stated that the reduction in the repo rate will prove to be a significant positive step for the real estate sector. It will provide relief to homebuyers from rising loan interest rates, encouraging them to invest. At a time when real estate prices are experiencing fluctuations, a reduction in interest rates will bring stability to the market. This move will not only ease the burden of EMIs on buyers but also boost their confidence in making decisions. It will attract investors as well and bring long-term positive changes to the real estate sector. This stability will increase market demand, benefiting not only developers but also strengthening India’s economy.
Prakash Mehta, the Chairman and Managing Director of Ocus Group, stated that the RBI has made it clear by keeping the repo rate stable for an extended period that it is working in the interest of consumers. Additionally, it is moving towards creating a positive market sentiment. As per the current expectations, if the repo rate is reduced or remains stable this time, it will directly lead to a surge in the real estate sector.Neeraj Sharma,
MD, Escon Infra Realtor, said, “The real estate industry keeps a keen eye on repo rate announcements, as changes by the RBI can greatly influence market conditions. A rate cut could reduce borrowing costs, encouraging homebuyers and attracting investments, ultimately fueling long-term growth. On the other hand, maintaining the existing rate promotes stability, which is essential for fostering consumer confidence and ensuring steady market performance.”
Image source- bbc.com
