Developers Eye Softening of Home Loan Interest to Fuel Demand Momentum

Realty players across India are hoping and expecting a further cut in the repo rate in the ensuing monetary policy review of the RBI in April.

- RITWIK MUKHERJEE

And if RBI finally does that, housing demand is expected to get a significant boost in FY 26, as a further cut in repo rate by the apex bank will make home loans more affordable and increase purchasing power for buyers.

Who doesn't know that Home Loans play a pivotal role in home buying, particularly for end-users, as the majority rely on financing to purchase their dream homes? A reduction in interest rates directly impacts affordability, making homeownership more accessible and boosting demand across all segments of the housing market, said Udit Jain, director, ONE Group Developer.

Interestingly, in its last Monetary Policy Committee (MPC) review meeting, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points after maintaining a consecutive status quo for eleven meetings. This marked the beginning of a much-anticipated rate cut cycle, and realty players across the country expect further reductions in the upcoming MPC meetings.