Indian real estate sector weathers unrelenting turbulence as the sentiment is pressured by Trump’s new 25 percent tariffs hikes and a notable 20 percent plunge in housing sales across top metros, as per the latest ANAROCK report. In Q2 2025 alone, just 96,285 homes were sold, a steep fall from 120,335 a year ago, indicating increasing buyer hesitancy and market uncertainty. Amid these headwinds, the central bank’s policy choices come with high relevance to initiate a turnaround and arrest further market deterioration.
The RBI has decided to keep the repo rates unchanged at 5.5 percent, also taking cognizance of the ongoing tariff uncertainties and the possible impact on the Indian economy.
Sushil Bedarwal, CMD, Bedarwal Group
The RBI’s decision to pause the ongoing rate cut cycle is in line with the prevailing economic indicators and the current geopolitical environment. It is also important to note that the market is still in the process of fully absorbing the impact of the last three consecutive rate cuts, which together amounted to a significant 100 basis points reduction. The benefits of these cuts are expected to gradually reflect in improved credit offtake and increased consumer spending, particularly in the retail and housing sectors.
The encouraging news is that India’s economic growth continues to be resilient. If macroeconomic conditions remain stable and supportive, we anticipate the RBI may resume the rate cut cycle with a further reduction of 25–50 basis points during the remainder of this calendar year.
Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution
As anticipated, the Reserve Bank of India (RBI) has kept the repo rate unchanged, despite favourable factors such as a good monsoon and inflation remaining well below the comfort level. The decision appears to be guided by ongoing geopolitical uncertainties and unresolved global tariff concerns.
However, the cumulative 100 basis points cut over the last three Monetary Policy Committee (MPC) meetings has already reduced borrowing costs significantly. As noted by the RBI Governor, the full impact of these rate cuts is still unfolding, and we expect retail credit demand—particularly for home and personal loans—to gain further momentum in the coming months, driven by the upcoming festive season.
Also Read: Mumbai Real Estate market maintains momentum in July 2025
We believe this is not the end of the current rate cut cycle, and we anticipate further easing in the repo rate in subsequent MPC meetings, depending on evolving macroeconomic condition.
We use cookies to ensure you get the best experience on our website. Read more...
Copyright © 2025 HomesIndiaMagazine. All Rights Reserved.
