1) Mr Shrinivas Rao, FRICS, CEO, Vestian
“A 25 bps rate cut signals a clear intent of monetary policy to support growth while inflation stays restrained. With borrowing costs declining, we expect project construction to accelerate and consumer demand to pick up significantly. For commercial real estate, lower funding costs and improved leasing activity are likely to fast-track occupier expansion and support new developments. This also brings better clarity for long-term investments and encourages broader credit expansion. Capital-intensive sectors and housing will particularly benefit from improved affordability. Such a calibrated step strengthens economic stability and supports the ongoing growth momentum.”
2) Mr Piyush Bothra, Co-Founder & CFO, Square Yards
The 25-basis point cut in the repo rate is a bold and welcome move in the current global macro environment. Despite the sliding rupee and other headwinds, this cut is a very strong signal by the RBI about the strength of the Indian economy and its decoupling from the rest of the world macro. This cut offers a meaningful boost to the real estate sector, reinforcing affordability at a time when buyer activity is already strengthening. With inflation well-managed, growth projections improving, and reforms sustaining consumption, the rate reduction builds positively on the earlier easing undertaken this year. Lower home loan rates, especially during the festive season, are expected to accelerate demand across mid-income and first-time buyer segments. For developers, the cut enhances credit conditions and lifts sentiment across the market.
3) Mr Vimal Nadar, National Director & Head, Research at Colliers India
After a brief pause, RBI has reduced the repo rate further by 25 basis points to 5.25%, the lowest in over three years. This reduction in benchmark lending rates, coupled with the continuation of neutral stance, reflects the confidence in India’s economic resilience despite global uncertainties and a depreciating Rupee. GDP growth rate projection for FY 2025-26 has been revised upwards from 6.8% to 7.3%, supported by robust domestic demand & private consumption. Meanwhile consumer inflation is expected to remain benign at 2% during the ongoing fiscal year.
For the real estate sector, especially the residential segment, this rate cut builds on the momentum created during the recent festive season and GST rationalization of key construction materials. Lower borrowing costs will further improve affordability and buyer sentiment, particularly in affordable & mid-income housing segments. Additionally, steady growth in average income levels can potentially drive property enquiries and boost housing sales in the next few quarters.
4) Mr Amit Goyal, Managing Director, India Sotheby’s International Realty
The RBI’s 25-basis-point repo cut comes at the right time. Real estate is capital intensive, and after years of elevated construction costs, lower rates offer meaningful relief. Cheaper credit boosts confidence—from homebuyers to institutional investors and should drive demand, transactions, and price stability,
With India posting 8.2 percent growth in Q2, the rate cut is a strong sail forward, reinforcing liquidity and sentiment in an already resilient economy.