Business EconomyPosted at: Dec 5 2025 3:26PM


Real estate sector hails RBI’s rate cut, expects it to raise housing demand

New Delhi, Dec 5 (UNI) The real-estate sector on Friday reacted with clear optimism to the Reserve Bank of India’s 25-basis-point repo rate cut, seeing it as a timely catalyst that could unlock fresh buying momentum and deepen investor participation at a time when demand remains structurally strong.
Industry leaders said the cut to 5.25 per cent- RBI’s fourth in 2025- comes at a crucial juncture, easing borrowing costs just as homebuyers across metros and emerging cities grapple with firm prices and rising lifestyle aspirations.
With the RBI also projecting stronger GDP growth and a softer inflation trajectory, the sector sees an environment where sentiment, affordability and macro fundamentals are aligned more closely than they have been in recent quarters.
Ashish Narain Agarwal, Founder & MD of PropertyPistol, said the move directly lifts homebuyer confidence in high-cost metros like Mumbai, where affordability is often the biggest hurdle.
The EMI relief- around Rs 750–800 on a Rs 50-lakh loan—may appear modest, but Agarwal said it often serves as the psychological trigger that nudges salaried buyers toward immediate purchase decisions.
He also noted that existing borrowers have a strategic opportunity to shorten their loan tenures by keeping EMIs constant, while refinancing could be a smart move if lenders delay passing on the rate cut.
Vishal Raheja, Founder & MD of InvestoXpert Advisors, said the sentiment boost extends beyond end-users. Markets such as Goa, Bengaluru and Delhi-NCR- already witnessing strong lifestyle-driven demand- could see sharper traction as the cost of capital softens.
He pointed out that a 25-bps reduction brings a Rs 900-1,200 monthly savings on a Rs 60-lakh loan, improving the viability of second homes, investment units and plotted developments.
Lower interest rates, he added, strengthen rental-yield math and improve exit visibility for investors eyeing a 2-4-year horizon.
Adding to the optimism, Pyush Lohia, Director of Lohia Worldspace, said the rate cut combined with the RBI’s upgrade of GDP growth to 7.3 per cent sends a clear message of stability. This, he said, is particularly significant for Tier-2 markets where rising aspirations meet the need for quality, affordable housing.
Lower borrowing costs, according to him, will empower first-time buyers while giving developers confidence to pursue long-term, sustainable projects instead of short development cycles.
With the central bank maintaining a neutral stance and projecting easing inflation, analysts expect the lower-rate environment to widen the buyer base and speed up transaction cycles. Developers say the coming quarters could see increased footfall, faster conversions and stronger activity across well-located residential hubs and holiday-home markets, provided banks move swiftly to transmit the benefits of the repo rate cut.
UNI SAS
Please log in to get detailed story.
Tags: #Real estate sector hails RBI’s rate cut# expects it to raise housing demand
More News

NITES complains to Centre over Wipro hiring

19 Jan 2026 | 9:41 PM

Bengaluru, Jan 19 (UNI) The Nascent Information Technology Employees Senate (NITES) has formally submitted a complaint to the union Labour Minister Mansukh L Mandaviya against Wipro Limited, citing serious recruitment irregularities affecting over 250 selected fresh graduates across multiple states.

see more..

New IBM platforms lets businesses, govts control AI workloads locally

19 Jan 2026 | 9:25 PM

Bengaluru, Jan 19 (UNI) IBM has launched a new software called IBM Sovereign Core, designed to help businesses, governments, and service providers manage AI workloads securely while keeping full control over their technology.

see more..

UP secures Rs 9,750 cr MoUs at Davos

19 Jan 2026 | 9:16 PM

Davos/ Lucknow, Jan 19 (UNI) The Uttar Pradesh Government delegation, led by state finance and parliamentary affairs Minister Suresh Kumar Khanna, began its engagements at the World Economic Forum (WEF) meeting in Davos with a strong focus on forging global partnerships and securing high-impact investments.

see more..

Arya Omnitalk CEO backs CCPA crackdown on illegal walkie-talkies

19 Jan 2026 | 9:13 PM

Bengaluru, Jan 19 (UNI) The Central Consumer Protection Authority's (CCPA) crackdown on the illegal sale of walkie-talkies on e-commerce platforms is timely and essential to protect both consumer safety and national security, Arya Omnitalk CEO Paresh Shetty said on Monday.

see more..

Nifty falls below 25,500 amid weak global cues

19 Jan 2026 | 7:37 PM

New Delhi, Jan 19 (UNI) The Indian stock market on Monday began the week on a subdued note. Nifty fell below 25,500 intraday amid weak global cues triggering broad-based profit booking.

see more..