In a much-anticipated move, the Reserve Bank of India (RBI) slashed the repo rate by 25 basis points to 6.00% in April 2025, citing slowing global trade and the impact of the recent U.S. tariff hike on Indian exports. This marks the second consecutive cut this year and comes with a shift in policy stance from "neutral" to "accommodative."
Yateesh Wahaal, Director at M3M India highlighted says, "The RBI’s move to reduce the repo rate by 25 basis points to 6% is a significant step towards boosting economic activity. For the real estate sector, this cut signals optimism, as lower borrowing costs can directly translate into improved liquidity, easier access to credit, and enhanced buyer sentiment.
With the policy stance shifting to ‘accommodative’, it also highlights the central bank’s commitment to supporting growth across key sectors. We anticipate renewed interest from both homebuyers and institutional investors—particularly in premium and commercial segments where financial planning plays a crucial role. This is an opportune time for developers to accelerate project execution and financing strategies. Overall, this decision will act as a catalyst for long-term industry momentum and support sustained demand in a market already showing signs of healthy recovery.
The central bank also revised its GDP growth forecast for FY26 to 6.5%, down from 6.7%, signaling caution amidst geopolitical tensions and tightening global financial conditions. Experts believe this could be the beginning of a shallow rate-cut cycle, aimed more at supporting sentiment than aggressively boosting demand.
Santosh Agarwal, CFO & Executive Director at Alpha Corp Development Limited signifies, “The RBI’s move to cut the repo rate to 6 per cent and adopt an accommodative stance is a timely and growth-supportive measure. This decision is expected to inject greater liquidity into the market and bring down borrowing costs, thereby improving sentiment across the real estate sector. Amid global headwinds, including the recent U.S. tariffs of 26 per cent on Indian exports and a slower GDP growth rate of 6.5 per cent, this rate cut signals the central bank’s proactive approach to sustaining economic drive. With enhanced access to capital and improved investor confidence, the industry is poised to witness increased momentum in both residential and commercial segments. The move also reinforces trust in the RBI’s commitment to long-term financial stability, making this an opportune moment for buyers and investors to act with optimism.”
Parvinder Singh, CEO at Trident Realty highlights, "We wholeheartedly welcome the RBI’s decision to reduce the repo rate to 6%, as it is a positive step toward making housing more affordable for buyers. This rate cut will lower home loan interest rates, providing much-needed financial relief and encouraging more people to invest in their dream homes. We believe this decision will further strengthen the housing sector and support economic progress."
The cut is seen as a relief for sectors like real estate and infrastructure, where borrowing costs significantly influence growth. However, with inflation forecasted at 4.2%, some analysts suggest there may still be room for a further cut or two this year.
Aman Sharma, Founder and Managing Director at Aarize Group states, “We welcome the RBI’s decision to reduce the repo rate to 6%, which reflects a prudent approach to balancing inflation and growth. For the real estate sector, this policy move brings renewed optimism, as it enhances credit availability and lowers borrowing costs. It offers developers a stable financial environment to plan and execute projects efficiently, while also reinforcing buyer confidence. In a sector where long-term planning is crucial, such accommodative measures support structured growth and sustained demand. We believe this step will further strengthen market sentiment and align well with the broader goals of economic revival and infrastructure-led development.”
Aman Trehan, Executive Director at Trehan Iris, says, “The RBI's recent decision to reduce the repo rate by 25 basis points to 6% is a strategic move that holds significant promise for the real estate sector. Moreover, lower borrowing costs are anticipated to make home loans more affordable, thereby enhancing the purchasing power of potential homebuyers and stimulating demand across various housing segments. Additionally, the reduction in interest rates is likely to ease financial constraints for developers, facilitating the timely completion of ongoing projects and encouraging the initiation of new developments. We are optimistic that this policy adjustment will act as a catalyst for growth within the real estate industry, promoting increased investment and contributing positively to the broader economy.”
As the RBI balances inflation control with growth support, all eyes are now on how quickly these cuts trickle down to industries and consumers.
