New Delhi: Much to the expectations of market and analysts, the Reserve Bank of India decided to reduce the repo rates by 25 bps to 6 percent. This was for the second time this year that the Central Bank reduced key interest rates.
Anuj Puri, Chairman – ANAROCK Group said that home loan borrowers may not see much meaningful or immediate interest rate relief.
“Banks have not transmitted earlier MPC rate cuts to borrowers because of higher funding costs, pressure on net interest margins, higher NPAs, and a cautious lending climate. If banks do pass on the benefits of the last two rates cuts, it will be a boost to homebuyers, particularly for those eyeing affordable housing. Many first-time homebuyers who had been hesitating to take the plunge may make their move if home loan rates reduce,” he added.
Market leaders and experts however believe that the RBI decision will support overall buyer sentiment across segments, including luxury.
“The recent repo rate cut is a measured step that will support overall buyer sentiment across segments, including luxury. While affordability improves more noticeably in the mid-income bracket, the luxury buyer is becoming more value-conscious and strategic,” said Ashwinder R Singh, Chairman, CII Real Estate Committee, and Vice Chairman & CEO, BCD Group.
“In today’s market, a marginal rate reduction acts as a psychological catalyst, especially for high-ticket decisions where timing matters. Combined with improving economic stability and a maturing investor outlook, this move may sustain the current momentum in luxury housing—but the segment will remain driven more by product relevance and location than just financial levers,” he added.
Luxury and ultra-luxury apartments are in high demand in the real estate sector, particularly in regions such as Delhi-NCR, where everyone is looking for upscale amenities and green living said Umesh Rathore, VP – Sales & Marketing, VVIP Group.
“The RBI action will be significant as it will have a direct impact on what people desire, with everyone willing to purchase a home that matches their lifestyle. Since the loan rates are likely to be lower than before, people will seek good investment opportunities that are likely to increase in value in the future”, he said.
