Aparna Constructions Hails Repo Rate Cut

Hyderabad: The cut in repo rate by the Reserve Bank of India will bring down the interest rates on home and other loan products, making homeownership accessible for first-time buyers, a real estate developer said.

RBI slashed the repo rate by 25 basis points to six per cent. This is the second time in a row that the Monetary Policy Committee has cut the repo rate by 25 basis points.

Rakesh Reddy, Director, Aparna Constructions, said: “RBI's approach to reduce repo rate marks a pivotal moment for the real estate sector, ensuring stability and propelling the market forward, while making homeownership more accessible.

This move, coupled with recent tax benefits, will significantly enhance affordability for homebuyers, particularly in the mid-premium and affordable housing segments.”

According to Reddy lower borrowing costs will stimulate housing demand and accelerate sales across price brackets as first-time buyers will now be encouraged to invest in residential real estate.

For developers, he said that reduced financing costs will improve liquidity and enable smoother execution of projects, fostering growth in both residential and commercial real estate segments.

“We are anticipating increased investments and new project launches. As the sector continues to play a vital role in India’s Viksit Bharat journey, the policy change is rewarding. However, going back to the 2019 range of around five per cent will help create a new economy of home owners,” Reddy added.