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RBI Repo Rate Cut to Boost Affordable & Mid-Income Housing: Ekta World’s Vivek Mohanani

Industry Perspective on RBI’s Repo Rate Cut

The real estate sector is expected to benefit from the Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 5.25%, which will reduce home loan EMIs and make property purchases more accessible for buyers.

Sharing his insights, Mr. Vivek Mohanani, CEO & MD of Ekta World, said:

“The RBI slashing the repo rate by 25 basis points to 5.25 per cent will strengthen demand for the domestic real estate sector by making home loan EMIs more affordable. This impact will be felt especially by the affordable and mid-income segments, which are more price conscious.

The timing of the announcement is important as it marks the perfect balance between robust growth for the economy and multi-year lows in terms of inflation. We are hopeful that this combination of factors will encourage potential home-buyers, including first-time home owners, to finalise their purchase decisions.

The lower lending rates also provide a necessary cushion against rising property prices in India’s metros. Developers can further capitalise on the increased demand with new property launches and attractive ownership schemes. The reduction in capital costs frees room for product innovation and faster execution.”

Industry analysts anticipate that the rate cut will revive buyer sentiment, encourage first-time homeowners, and support sustainable growth in both affordable and mid-income housing segments across India’s metro cities.