Real Estate Sector Anticipates Positive RBI MPC Outcome to Sustain Growth Momentum
Industry Leaders Expect Further Rate Cuts to Strengthen Demand, Affordability & Buyer Confidence
As the Reserve Bank of India’s Monetary Policy Committee (MPC) prepares for its upcoming bi-monthly meeting, the real estate sector remains optimistic, hoping that the central bank will continue to support growth with another potential cut in the repo rate.
The MPC plays a crucial role in managing macroeconomic stability, and its decisions directly influence borrowing costs across sectors. For real estate, any shift in policy rates has a direct impact on home loan affordability, buyer sentiment, and overall housing demand.
Following the 100-basis-point reduction in the repo rate from February to June 2025, the sector has experienced a resurgence in demand, particularly in residential housing. Industry experts believe that inflation remains well below target, giving the RBI room to continue its accommodative stance.
Industry Reactions & Outlook:
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said:“With inflation staying well below the RBI’s target, there is room for a fourth consecutive repo rate cut. A 25-bps reduction would lower the repo rate by 125 bps from last year, further reducing borrowing costs. With many banks already offering home loans below 8%, this would enhance affordability and encourage end-users to advance their home-buying decisions.
Even if the RBI holds the rates, the current low-interest environment is already driving strong housing demand through better affordability and easy financing.”
Mr. Jash Panchamia, Executive Director, Jaypee Infratech Ltd., noted:“The RBI’s neutral stance in its last policy review leaves open the possibility of either a status quo or a modest rate cut. With inflation at a six-year low, a 25-bps cut could invigorate the overall economy.
The real estate market has already gained from previous cuts and stands to benefit even more from further easing, especially for first-time homebuyers and mid-income segments.”
Mr. Ashok Kapur, Chairman, Krishna Group & Krisumi Corporation, added:“The 100 bps cumulative cut this year has significantly benefited the housing sector. A further 25-bps cut would improve affordability even more, fueling demand across segments. Positive buyer sentiment, combined with easier access to loans, keeps the sector on a strong growth trajectory.”
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales & Distribution Pvt Ltd., commented:“The RBI surprised the market with a 50-bps cut in the last MPC, following two 25-bps reductions. While another aggressive cut may be unlikely, a moderate 25-bps reduction remains feasible.
If announced, it would boost retail borrowing, especially as the festive season approaches—a period traditionally marked by increased home purchases and consumer spending.”
Mr. Vikas Bhasin, Managing Director, Saya Group, stated:“We are optimistic about another 25–50 bps repo rate cut in the upcoming meeting. This year’s cumulative cuts have already led to notable reductions in home loan rates, enhancing loan eligibility and supporting demand across both affordable and luxury housing segments.”
Mr. Sushil Bedarwal, CMD, Bedarwal Group, shared: “Lower interest rates are crucial for affordable and mid-income housing, as these segments are highly price-sensitive. With the RBI signaling possible further easing, we expect another 25-bps rate cut.
Banks must quickly pass on any benefits to borrowers, as reduced EMIs would empower many homebuyers to take the final step toward owning a home.”
Sector Outlook:
The real estate industry is well-positioned to benefit from a supportive monetary environment. If the RBI continues its rate-cut cycle, it would provide continued momentum to the housing sector, improve affordability, and attract first-time buyers and investors alike. Even in a no-change scenario, the current low interest rates, easing inflation, and stable macroeconomic environment are enabling the sector to maintain robust growth across regions
