Real estate industry expects a rate cut by RBI

The real estate industry is expecting a rate cut by RBI when its monetary policy committee is meeting here between April 6 and 08.

For commercial real estate, steady interest rates and borrowing costs support sustained leasing momentum and long-term investment decisions, thereby increasing demand for office space and supporting new developments. Easier credit availability attracts both individual and institutional investors, driving real estate growth. Talking to Bizz Buzz, Manas Mehrotra, Founder, 315Work Avenue, a leading coworking player, says, “The RBI in the previous MPC announcement has been supportive of Real Estate Investment Trusts (REITs) allowing them to borrow directly from banks, although with specific safeguards. Hence, we expect a rate cut to have a pronounced impact on the real estate sector, easing borrowing costs and improving credit availability, leading to consumer demand to pick up significantly.”

Real estate investments remain the most desired due to their strong base and reliability factor. Hence, the industry looks forward to a supportive stance from the RBI in the upcoming monetary policy announcement.

Ramani Sastri - Chairman & MD, Sterling Developers says, “We are hopeful of a rate cut as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy.”

A stable interest-rate environment will play a crucial role in sustaining homebuyer confidence throughout the year. The real estate sector has shown resilience with strong sales, and supportive monetary policy and measured approach will only accelerate its upward trajectory.