Paradigm Realty CMD Parthh K. Mehta on RBI Repo Rate Cut Boosting Housing Demand

Experts Speak

Repo Rate Cut Spurs Buyer Confidence and Investment: Paradigm Realty’s Parthh K. Mehta

3 weeks ago

Industry Insights on RBI’s Repo Rate Cut

The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points has been welcomed by the real estate sector, expected to improve affordability, stimulate buyer demand, and strengthen market activity.

Parthh K. Mehta, CMD of Paradigm Realty, said:

“The RBI’s announcement is aligned with our expectations of a 25-basis-point cut, which will close out this year on a high note – historically, such reductions have prompted a surge in demand, caused by increased buyer confidence.
By lowering the cost of borrowing, home loan EMIs become more affordable, which has direct consequences on purchase decisions. From the developers’ standpoint, the repo rate reduction will enable them to access more capital for their projects, which can positively impact project completion timelines.
With inflation softening significantly, liquidity conditions stabilising and economic activity remaining robust, the MPC has an incredible opportunity to shift toward a more growth-supportive stance. By easing financing costs, this move will stimulate consumption and strengthen investment sentiment as the economy enters a high-demand cycle.”

Analysts believe that the move will enhance home affordability, accelerate project timelines, and stimulate consumption, supporting a sustained growth cycle in the residential real estate market.