Anuj Puri, Chairman of ANAROCK Group, noted, “Lower repo rates make home loans cheaper, improving affordability for buyers. Affordable housing has seen its sales share fall sharply from 38% in 2019 to just 18% in 2024.
A 19% decline in unsold stock, however, signals pent-up end-user demand that could now be unlocked—if banks pass on the benefits swiftly.”The decision is also expected to bring down developers’ borrowing costs, offering a boost to project viability and completion. However, Puri cautioned that global trade tensions and input cost inflation may offset some of the positive effects, especially in the luxury and commercial segments.Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, welcomed the rate cut, saying it would enhance buyer confidence and spur demand across housing categories. “Combined with earlier rate cuts, today’s move means borrowing costs have dropped by 100 basis points since last year. This will encourage more homebuyers to act,” he said.Avneesh Sood, Director, Eros Group, said the move is timely but stressed the importance of efficient rate transmission.
“Affordable and mid-income housing, hit by a 28% fall in sales, will respond to this rate cut—but only if the benefits reach borrowers. The cut also improves project feasibility by lowering working capital costs, especially in Tier 2 and 3 cities. We risk losing momentum unless this opportunity is capitalized on quickly,” he added.Jaypee Infratech Executive Director Jash Panchamia highlighted that banks already offering home loans below 8% may further reduce rates, making real estate investment more attractive.While the repo rate cut is widely welcomed, its success now hinges on how effectively banks lower lending rates and how developers manage rising input costs amid global uncertainties.
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