Dr. Samantak Das, Chief Economist at JLL India, highlighted that this rate cut aligns well with fiscal strategies and could reignite consumption. He stated, “The rate cut – the first in nearly five years – sends a clear message that a cohesive policy framework is in place, prioritizing growth while balancing risks.” He also emphasized that the reduction in capital costs could spark a new wave of demand in the housing market by improving homebuyer sentiment and affordability.

While 2024 was a strong year for real estate, rising prices had started to slow down market momentum, as seen in the drop in Q4 sales. The recent rate cut, along with new budget tax benefits for middle-income buyers, is expected to boost homebuyer confidence and sustain market activity.

Dr. Niranjan Hiranandani, Chairman of NAREDCO, called the repo rate cut a strategic move, citing stable inflation and a moderate fiscal deficit. He remarked, “With inflation under control and steady economic growth, this rate reduction signals resilience and robust demand, despite global uncertainties.”

Shishir Baijal, Chairman and Managing Director of Knight Frank India, also welcomed the move, calling it a significant positive development for real estate. He believes the rate cut will make housing more affordable, increasing demand for home loans and stimulating sector growth. Baijal added that the tax benefits for the middle class would further support residential demand, particularly in the sub-50 Lakh category, which had seen weaker demand recently.

Overall, experts believe the RBI’s repo rate cut, combined with the budget’s focus on tax incentives, will have a long-lasting positive impact on the housing market. With lower interest rates, homebuyers are expected to find ownership more accessible, which could lead to increased sales and new project launches.

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