Experts opinion on RBI Monetary Policy
RBI’s 25 bps repo rate cut boosts homebuyer affordability, strengthens real estate demand, and improves developer liquidity, supporting India and Hyderabad real estate growth.
Mr. Ankur Jalan,
CEO, Golden Growth Fund (GGF)
From depositors’ standpoint, a 25bps cut in repo rate will create concerns about declining returns on fixed deposits and other interest-bearing savings. Furthermore, this would likely push banks to trim deposit rates in the coming months, making it harder for savers to earn meaningful returns. While lower rates may support broader economic growth, affluent investors and family offices often redirect capital toward higher-return products such as real estate–focused Category II AIFs to preserve real yields, thereby improving fundraising momentum for these funds. A lower interest-rate environment also reduces the cost of capital for developers and strengthens project viability, which in turn expands the opportunity for AIFs.
Mr. Lalit Parihar,
managing director, Aaiji Group
The RBI’s decision to cut the repo rate by 25 bps is a significant boost for the ongoing real estate upswing. By lowering the cost of borrowing, the move directly translates into more affordable home loans for both prospective buyers and existing customers in form of reduced EMIs. This improved affordability is expected to strengthen homebuyer sentiment across segments—from first-time homeowners to those considering upgrades or long-term investments.
With the demand for quality homes continuing to surge, driven by urban expansion, rising disposable incomes, and a preference for modern, well-planned living spaces, the rate cut provides just the right momentum for sustained growth. Developers stand to benefit as well, as easier credit conditions can improve liquidity, accelerate project execution, and support new launches in high-demand micro-markets.
Mr. Vijay Harsh Jha,
Founder and CEO
VS Realtors
The housing market has shown signs of a slowdown. A 25-bps rate cut and its proper transmission would provide homebuyers cushion from rising property prices thereby encouraging home purchases. Developers, too, stand to benefit from lower cost of borrowing enabling faster project execution. The housing demand-supply dynamics seem to be aligning since second half of 2024 and this pursuit of symmetry, in what developers are launching and what buyers want, will help propel real estate market.
Mr. Ashok Kapur,
Chairman, Krishna Group
The 25 bps repo rate reduction is well aligned with the current low-inflation environment and India’s steady growth outlook. The luxury housing segment has seen decisive momentum from end-users over recent quarters, driven by rising incomes and a shift towards lifestyle-led living. Softer lending rates will further enhance affordability for discerning buyers looking to upgrade and invest in high-quality homes that offer better design standards and long-term asset value. We expect sustained demand within the premium segment as consumer preference evolves toward integrated, high-quality, future-ready developments. The rate cut strengthens sentiment and supports the long-term growth cycle of the real estate market.
The 25 bps repo rate reduction is well aligned with the current low-inflation environment and India’s steady growth outlook. The luxury housing segment has seen decisive momentum from end-users over recent quarters, driven by rising incomes and a shift towards lifestyle-led living. Softer lending rates will further enhance affordability for discerning buyers looking to upgrade and invest in high-quality homes that offer better design standards and long-term asset value. We expect sustained demand within the premium segment as consumer preference evolves toward integrated, high-quality, future-ready developments. The rate cut strengthens sentiment and supports the long-term growth cycle of the real estate market.
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