RBI Rate Cut To Boost Housing Sales, Expected Drop In Mortgage Rates: CREDAI, NAREDCO

The two associations, which have more than 16,000 developers as members, welcomed the RBI's move to reduce the repo rate by 25 basis points, saying this will stimulate real estate demand

The RBI's continued policy easing highlights its commitment to sustaining growth while safeguarding macroeconomic stability, the CREDAI President said

Source : PTI

Housing sales will rise following the RBI's decision to cut the repo rate as interest rates on home loans are likely to come down, according to realtors' apex bodies CREDAI and NAREDCO.

The two associations, which have more than 16,000 developers as members, welcomed the RBI's move to reduce the repo rate by 25 basis points, saying this will stimulate real estate demand, especially of affordable and mid-income homes. Commenting on the move, Boman Irani, President of CREDAI National, said, "At a time of global economic volatility caused by increasing tariffs and geopolitical tensions, this move reflects a continued shift toward a pro-growth stance amid easing inflation and a stabilizing macroeconomic outlook." He said the rate cut is well-timed to uplift consumer sentiment and enhance borrowing capacity,”especially in the housing sector.

"It is likely to improve home loan affordability, stimulate housing demand, and provide a strong impetus to the mid-income and affordable segments, where interest rate sensitivity remains high," Irani said.

The RBI's continued policy easing highlights its commitment to sustaining growth while safeguarding macroeconomic stability, the CREDAI President said.

G Hari Babu, National President of NAREDCO, said the RBI decision will give a boost to the real estate sector.

"Lower interest rates will make home loans affordable, which may boost housing demand across categories. This will result in increased residential sales, better liquidity in the market, and a gradual depletion of unsold inventory," he said.

This will also encourage developers to launch new projects, especially in affordable housing, Hari Babu said.

"With the reduction in borrowing costs, more aspiring homeowners may enter the market, which will help bridge the demand-supply gap in the sector. Commercial real estate will also benefit, as easier financing may encourage businesses to expand and invest in office and retail spaces," the NAREDCO president said.

Overall, he said the RBI's decision reflects a strong growth outlook and gives a much-needed boost to real estate sentiment.

Housing sales have fallen in the first quarter of the 2025 calendar year because of high prices, lower launches and economic growth uncertainties.

Real estate data analytics firm PropEquity data showed that housing sales declined 23 per cent annually to nearly 1.06 lakh units during January- March across nine major cities.

Housing sales fell 28 per cent in the January- March period across seven major cities to 93,280 units, according to Anarock.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)