On June 6, the RBI is expected to announce a third straight 25 bps rate cut after its bi-monthly Monetary Policy Committee meeting, helped by low inflation (3.16% in April). A likely cut in the Cash Reserve Ratio (CRR) will improve liquidity, giving banks more funds to lend. This could benefit real estate—developers might access more capital, and banks may reduce home loan rates, boosting demand in the affordable and mid-income housing segments.
However, global trade tensions and U.S. tariffs are raising the cost of imported building materials, possibly hurting luxury and commercial projects and reducing developer profits. While the rate cut is a big positive for real estate, especially affordable housing, growth will depend on managing rising costs and ongoing global challenges. More policy support and domestic sourcing may be key to long-term stability.
