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Repo Rate Cut to Boost Affordability and Buyer Confidence: Mehta Realty’s Ruchit Mehta

Industry Reaction to RBI’s Repo Rate Cut

The real estate sector has welcomed the Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 5.25 per cent, calling it a timely move that strengthens affordability and buyer sentiment amid rising home prices across major cities.

Commenting on the development, Mr. Ruchit Mehta, Partner at Mehta Realty, said:

“The real estate sector welcomes news of the repo rate cut by 25 basis points to 5.25 per cent. This decision will bring down interest rates on home loans and boost buyer confidence, especially for first-time homebuyers.

The repo rate cut will make home ownership more affordable, considering that average housing prices across major Indian cities have risen by nearly 10 per cent in 2025. Buyer sentiment, especially among NRI investors, will be further bolstered by the robust growth the Indian economy is experiencing.”

Industry experts believe the policy move will offset price pressures, improve loan affordability, encourage first-time buyers, and sustain demand from domestic and NRI investors, supporting stable growth in the residential real estate market.