The real estate sector is closely monitoring the Reserve Bank of India’s (RBI) monetary policy meeting, hoping for another repo rate cut to reignite demand and ease borrowing pressures.

According to Vestian CEO Shrinivas Rao, a third consecutive rate cut of 25 basis points could be on the cards. “The RBI is expected to lower the repo rate by 25 basis points for the third consecutive time to boost consumption as inflation continues to remain below the 4% target range,” he said, adding that the central bank is likely to retain its ‘accommodative’ stance to support growth amid “global uncertainties triggered by US tariffs and geopolitical frictions.”

Rao noted that any move to lower the benchmark rate would directly impact the property market. “This rate cut is expected to bring relief to both homebuyers and developers, as most commercial banks are likely to follow suit and reduce interest rates,” he explained. “While homebuyers will be able to secure home loans at lower rates, developers will benefit from low borrowing costs, potentially boosting affordability and investments in the real estate sector.”

Vimal Nadar, national director and head of research at Colliers India, also anticipates a pro-growth policy stance. “We expect the RBI to continue its growth-supportive stance and further rationalise the repo rate,” he said. With inflation under control, Nadar believes the RBI has room to act—even as external challenges loom. “Impact of external trade volatilities and atypical monsoon patterns is likely to have a bearing on future growth prospects,” he cautioned. A third-rate cut, he added, “can spur homebuyers’ sentiment and resultantly improve housing demand, particularly in affordable and middle-income segments.”

Developers, too, could benefit, according to Nadar, through gradual inventory clearance and financial relief by lowering borrowing costs.

Piyush Bothra, co-founder and CFO of Square Yards, called for a bolder move from the RBI. Despite India’s economy growing by a healthy 7.4% in Q4FY25, full-year growth slowed to 6.5%—the weakest since the pandemic. “With inflation well within control, now hovering near 3%, this is an opportune moment for the central bank to take some bold steps,” he argued.

A significant rate cut is not just desirable but necessary to revive the animal spirits and boost private investments, which have been quite sluggish,” Bothra said, adding that the property sector mirrors this moderation. “Even a 1% reduction in interest rates can increase a homebuyer’s purchasing power by nearly 10%, turning the dream of owning a house into reality for a larger population.”

"I expect another 25-bps rate cut, given the downward trend in inflation and the need to strengthen consumer confidence in an uncertain global economic and geopolitical climate. A stable and lower interest rate environment would not only improve affordability but also drive long-term momentum for home ownership, especially in the affordable and mid-income housing segments," says Atul Monga, CEO & co-founder, BASIC Home Loan.

The message from the sector is clear: real estate wants the RBI to stay the course on easing—and perhaps, do a little more.