Realtors happy over passing on repo rate reduction to end buyers
MUMBAI, June 18 (The CONNECT)-Unlike in the past, leading commercial banks in India have swiftly responded to the Reserve Bank of India’s recent repo rate cut by passing on the benefits to borrowers.
The State Bank of India (SBI), country’s largest lender, slashed its lending rates by 50 basis points, bringing much-needed relief to both existing and new borrowers. With this revision, SBI’s repo linked lending rate (RLLR) now stands at 7.75 per cent, while its external benchmark-based lending rate (EBLR) dropped to 8.15 per cent from 8.65 per cent. Both changes came into effect from June 15, 2025.
The cumulative rate cuts by leading banks are likely to reduce monthly EMIs for new borrowers and offer partial relief to existing floating-rate borrowers. Real estate experts anticipate a positive shift in housing demand, especially in the affordable and mid-income segments, as cost of borrowing dips.
Prashant Sharma, President, NAREDCO Maharashtra, welcomed the move, stating “The interest rate correction is a timely booster for the housing sector. Reduced EMIs will not only revive fence-sitters but also give impetus to end-user-driven demand. We expect this to translate into improved sales velocity, particularly in Tier-I cities like Mumbai and Pune.”
Nishant Deshmukh, Founder and Managing Partner, Sugee Group, opined that the reduction in lending rates offers much-needed and immediate relief to homebuyers, particularly those dependent on home loans to realise their dream of homeownership. Lower EMIs significantly reduce monthly outflows, easing financial pressure and making property ownership more accessible to a broader segment of aspiring buyers. Beyond the financial benefit, such timely rate cuts also play a pivotal role in reviving buyer sentiment, restoring confidence, and accelerating decision-making. This positive shift is essential for sustaining market momentum and supporting long-term growth in the real estate sector,
Shraddha Kedia-Agarwal, Director, Transcon Developers, echoed similar optimism “The revised rates will allow homebuyers — especially first-time buyers — to re-evaluate their budgets and invest in homes with better amenities and lifestyle offerings. For developers, this could catalyse fresh enquiries and faster conversions.”
As lending rates trend downward and macroeconomic stability improves, the real estate sector could witness a more broad-based recovery. Developers and analysts alike agree that this is a strong step towards balancing affordability with aspirational living — a combination essential for sustainable housing growth in 2025 and beyond.
