(MENAFN- KNN India) New Delhi, Dec 5 (KNN) Hailing the repo rate cut by Reserve Bank of India (RBI), real estate firms and housing finance companies on Friday said that the decision would offer relief to home-buyers and support the growth in housing sector.

Shishir Baijal - International Partner, Chairman & Managing Director, India Knight Frank said that the RBI decision reflects a greater willingness to support growth more assertively.

"The reduction in borrowing costs should offer timely relief to the real estate sector, where lower home loan rates can help sustain momentum in end-user demand and improve developers' cost structures. We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters," he said.

Jash Panchamia, Executive Director, Jaypee Infratech Limited said that the repo rate cut is expected to stimulate consumption across sectors, reinforcing overall economic growth.

"The housing sector, particularly affordable and mid-segment housing, stands to benefit as lower home loan rates are likely to encourage cautious buyers to make their purchase decisions. Consequently, this could create a positive ripple effect, driving demand for quality homes and further strengthening market activity, while supporting investment sentiment and fostering long-term confidence in the real estate ecosystem," he said.

The RBI's Monetary Policy Committee (MPC) on Friday decided unanimously to cut policy repo rate by 25 basis points (bps) to 5.25% with immediate effect. The move is set to provide relief to homebuyers and other borrowers.

Cumulatively, the RBI has cut the repo rate by 125 bps this year.

"This cumulative rate cut has and will bring favourable relief to borrowers, especially first-time homebuyers in the affordable housing category, as a reduction in rates cuts down their EMI burden and opens up further avenues towards home-ownership," said Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd.

Amit Goyal, Managing Director, India Sotheby's International Realty noted,“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."

Anuj Puri, Chairman – ANAROCK Group said that the rate cut provides a critical cushion to affordability, potentially bringing home loan interest rates to more attractive levels.

"This can encourage aspiring homebuyers who had paused their decisions due to price hikes to finally take the plunge. The rate cut is a distinct sentiment multiplier for year-end sales," he further said.

Shekhar Patel, MD and CEO of Ganesh Housing Ltd said, "A lower policy rate will help enhance home loan affordability and strengthen end-user sentiment, especially in markets where fence-sitters were waiting for monetary easing. For developers, the reduction in financing costs improves liquidity planning and supports timely execution cycles, which has become critical in a demand driven environment driven by credibility and delivery discipline."

Nitin Bavisi, CFO, Ajmera Realty & Infra India Ltd said, "With a total cumulative rate cut of 125 basis points in 2025, demand for upcoming housing launches is likely to gain further momentum. Softer interest rates boost home loan affordability, strengthen buyer sentiment, and drive demand, especially in mid-income and premium segments, while easier credit lowers developers' funding costs and speeds up project execution."

(KNN Bureau)

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