RBI rate cut to improve sales of affordable, mid-income housing properties: CREDAI

According to CREDAI, lower interest rates will increase homebuyer affordability and improve the financial viability of affordable housing projects. File photo
| Photo Credit: The Hindu

Realtors’ apex body CREDAI on Friday (June 6, 2025) described the Reserve Bank of India (RBI) decision to cut repo rate by 50 basis points as a bold step and said this will help boost sales of residential properties.

Hailing the decision, CREDAI president Shekhar G. Patel said the RBI decision will improve consumers’ sentiment, immensely benefitting mid-income and affordable housing segments, which have been struggling in the last few years.

“We welcome the RBI’s decision and view it as a bold and timely step toward stimulating domestic demand,” Patel said.

This decision comes at a pivotal time, as India is witnessing strong real estate momentum across metros as well as Tier 2 and Tier 3 cities.

“Lower lending rates will directly enhance home loan affordability, particularly in interest-sensitive categories like mid-income and affordable housing. Reduced EMIs are expected to significantly improve buyer sentiment and encourage first-time homebuyers to enter the market,” Mr. Patel added.

The cumulative 100 basis point reduction over the last six months is a welcome and strategic move, the CREDAI president said.

“We are particularly optimistic about its impact on the affordable housing sector, which has been under pressure on both the demand and supply sides.

Lower interest rates will increase homebuyer affordability and improve the financial viability of affordable housing projects,” he said.

According to many property consultants, housing sales declined across 7-8 major cities in the January-March quarter compared to the year-ago period.