Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

“We saw a growth-oriented Union Budget with limited direct measures for the housing sector, and in this context, we believe the RBI has room to consider a calibrated 25-basis point repo rate cut in the upcoming MPC meeting. While rate reductions are often associated with currency pressures, the current macro environment, marked by moderating inflation, comfortable forex reserves, and improving India-US trade dynamics, provides adequate space for such a move without materially unsettling the rupee.

A rate cut would be particularly supportive for homebuyers in income segments whose purchasing capacity is closely aligned with lower-value housing, where affordability remains highly sensitive to borrowing costs. Effective transmission of any rate cut into home loan rates would meaningfully improve borrowing capacity and help restore housing affordability for end-users.”