&w=3840&q=100)
Stable rate will nudge people to buy homes: Real estate industry execs
The central bank has cut the policy repo rate by 100 basis points (bps) so far in 2025. That coupled with efforts to maintain liquidity amid global uncertainties may help housing affordability, they said.
'For the real estate sector, the continuation of stable policy rates and surplus liquidity conditions provide much-needed predictability and help preserve affordability for homebuyers,' said Shishir Baijal, chairperson and managing director (MD), Knight Frank India.
'Notably, some banks have already reduced consumer home loan rates — a move that supports housing demand, especially in the mid-income and low-income segment — and more transmission in interest rates is underway. This policy continuity, coupled with easing credit conditions and steady economic growth can provide a boost to the affordable housing categories,' he said.
A stable rate environment and the benefits of previous rate cuts are expected to boost affordable and mid-income housing.
'With a cumulative rate cut of 100 bps since February 2025, the ongoing monetary policy transmission is gradually taking effect, and the full impact on the broader economy, including the real estate sector, is still unfolding,' said Venkatesh Gopalakrishnan, director group promoter's office, MD - Shapoorji Pallonji Real Estate.
'From a housing perspective, especially in the affordable and mid-income segments, the current rate environment continues to offer conducive conditions for homebuyers. Steady interest rates help preserve affordability and sustain buyer sentiment, encouraging long-term investment in homeownership,' he said.
Industry experts believe that stable rates mean that attractive home loan rates will continue. State Bank of India, Punjab National Bank and Canara Bank are among lenders that recently reduced home loan rates.
'The market's current momentum is built on solid demand, and this decision allows that organic growth to continue without the market becoming overly dependent on rate cuts. Knowing that interest rates are stable gives both developers and buyers a clear runway for planning,' said Samantak Das, chief economist and head of research and REIS, India, JLL.
Indian real estate is 'weathering unrelenting turbulence' due to US tariffs and a 20 per cent plunge in housing sales in top cities, according to Anarock, a real estate consultancy. As many as 96,285 homes were sold in the second quarter of 2025, down almost 20 per cent from the previous year (120,335 homes sold) to indicate increasing buyer hesitancy and market uncertainty.
Average prices for residential properties in top seven cities have increased by 39 per cent in the last two years: from Rs 6,470 per square foot in the second quarter of 2023 to Rs 8,990 per square foot as of Q2 2025.
'That said, overall, homebuyers are currently driven by long-term confidence rather than short-term rate fluctuations. Given the upcoming festive season, developers may look to keep the market momentum going with offers and flexible payment plans, which may help improve affordability for many genuine buyers,' said Anuj Puri, chairperson of Anarock.
Pradeep Aggarwal, founder and chairperson, Signature Global (India), said the central bank's unchanged policy stance will help the real estate sector's growth. 'With steady interest rates and strong consumer confidence, developers are expected to meet the sustained demand for quality housing through greater focus on new offerings,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
19 minutes ago
- Business Standard
Differences must not become disputes: S Jaishankar to China's Wang
India and China on Monday discussed economic and trade issues, including resumption of border trade and direct flights, with New Delhi again flagging its concerns over Beijing's curbs on the export of rare earth minerals. Chinese Foreign Minister Wang Yi landed in New Delhi on Monday evening for a two-day visit. He held talks with External Affairs Minister S Jaishankar. In his opening remarks during the discussion, Jaishankar said that 'the basis for any positive momentum' in India-China ties 'is the ability to jointly maintain peace and tranquillity in the border areas'. It is also essential that the de-escalation process move forward, he said. 'Having seen a difficult period in our relationship,' Jaishankar told Wang, 'our two nations now seek to move ahead'. This requires a candid and constructive approach from both sides, he said. Jaishankar said the two countries must be guided in this endeavour by the three mutual, 'mutual respect, mutual sensitivity and mutual interest.' 'Differences must not become disputes, nor competition conflict,' he said. Prime Minister Narendra Modi and Chinese President Xi Jinping's meeting on October 23, 2024, in the Russian city of Kazan, on the sidelines of the Brics Summit, paved the way for de-escalation in the border areas between the two countries after the friction in ties since the Galwan Valley clashes in June 2020. Jaishankar and Wang's discussion will also lay the groundwork for the Indian PM's visit to the northern Chinese city of Tianjin to attend the Shanghai Cooperation Organisation (SCO) Summit on August 31 and September 1, where he is slated to meet the Chinese President on the sidelines of the summit. Wang and India's National Security Adviser Ajit Doval will discuss the boundary issues under the auspices of the 24th round of the Special Representatives mechanism on Tuesday. Wang will also call on Prime Minister Modi on Tuesday evening. At the meeting of the two delegations on Monday, Jaishankar said they will also discuss river data sharing, people-to-people contacts, among other issues. 'I would like to follow up on some particular concerns that I had brought up with you when I visited China in July,' Jaishankar told Wang, alluding to India's request that China lifts restrictions on its export of rare earth minerals. The two sides discussed the international situation. 'We seek a fair, balanced and multi-polar world order, including a multi-polar Asia. Reformed multilateralism is also the call of the day,' Jaishankar said. 'In the current environment, there is clearly the imperative of maintaining and enhancing stability in the global economy as well,' he said. The fight against terrorism in all its forms and manifestations is another major priority, the EAM said. Wang's visit is the first by a Chinese minister since Modi and Xi's Kazan meeting in October, Jaishankar noted. 'Overall, it is our expectation that our discussions would contribute to building a stable, cooperative and forward-looking relationship between India and China, one that serves both our interests and addresses our concerns,' he said, wishing China a successful SCO Summit that it is hosting. In Beijing, China on Monday said Foreign Minister Wang's visit to India was aimed at working with New Delhi to deliver on important understandings reached between the leaders of the two sides and decisions taken during the previous round of border talks. Wang is slated to visit Pakistan later this week.
NDTV
23 minutes ago
- NDTV
Railways Understated Working Expenses In 2022-23: CAG Report
New Delhi: Railway's total earnings and expenditure from its operations when compared with its cross subsidising records showed that it understated its expenditure in the financial year 2022-23 by more then 5,000 crore, the Comptroller and Auditor General's report, recently tabled in the Parliament, has revealed. The CAG found that while the Railways, after working out its earnings and expenditures, presented a net profit of Rs 2,517.38 crore, when the loss in passenger services was compensated with the profit from freight services, it showed a net loss of Rs 5,257.07 crore. The audit showed that Railways' total working expenditure (including appropriation to various funds) stood at Rs 2,37,659.58 crore whereas its earnings from passenger, coaching, freight and other services were Rs 2,40,176.96 crore generating a surplus of Rs 2,517.38 crore. On the other hand, fiscal records related to cross subsidisation of passenger and other coaching services reflected that total expenditure in operation of all types of trains (passenger, coaching and goods) was Rs 2,45,393.71 crore and total revenue receipt (earnings) from all trains and sundry services was Rs 2,40,136.64 crore, incurring a loss of Rs 5,257 crore. "From the above, it may be observed that the total working expenditure in the summary of fiscal transactions has been understated," the CAG said. It added, "The understated expenditure will not reflect true Operating Ratio (OR). Taking into account the understated expenditure the OR would be 101.33." The audit found that when taking into account the net profit of Rs 2,517.38 crore, the Railways OR was 98.10 per cent. "A higher ratio indicates a poorer ability to generate surplus. Against the target of 96.98 per cent in the Budget Estimates, the OR of Railways was 98.10 per cent in 2022-23. This meant that Railways spent ₹ 98.10 to earn ₹ 100.00," the report said. According to the summary of cross subsidisation, Railways generated Rs 74,289.66 crore from all passenger operation services and Rs 1,65,846.98 crore from freight operations, making Rs 2,40,136.64 crore as total revenue receipts in 2022-23. In so far as its expenses were concerned, its expenditure on goods services stood at Rs 1,11,062.87 crore and passenger services at Rs 1,34,330.84 crore making a total of Rs 2,45,393.71 crore. The financial record further suggested that the Railway made a loss of Rs 60,041.18 crore from passenger services while it registered a profit of Rs 54,784 crore in goods services. "The loss of ₹ 5,257.07 crore in passenger operations was left uncovered during 2022-23. The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services," the audit said. The report also recorded the biggest operational loss from the Sleeper Class, Ordinary Class, and Second Class which stood at Rs 17,819.21 crore, Rs 17,076.90 crore and Rs 16,357.02 crore.
NDTV
23 minutes ago
- NDTV
Apple Leases Office In Bengaluru, To Pay Rs 6.3 Crore Monthly Rent
New Delhi: iPhone maker Apple India has leased around 2.7 lakh square feet of office space in Bangalore for 10 years with a starting monthly rent of Rs 6.3 crore, according to data analytics firm Propstack. Apple is the biggest exporter of mobile phones from India. It exported iPhones worth about Rs 1.5 lakh crore in the financial year 2024-25. The company has taken multiple floors including car parking space on lease from real estate firm Embassy Group. The iPhone maker is estimated to pay more than Rs 1,000 crore in rent, car park and maintenance charge over a period of 10 years, as per Propstack, which has reviewed the registration document of this leasing transaction. Apple declined to comment on an email query. The lease has been signed for a period of 120 months or 10 years with effect from April 3, 2025. The fresh investment from Apple comes despite US President Donald Trump openly calling out the company for expanding operations in India. The starting rent of the premise is Rs 235 per square feet per month and made a deposit of Rs 31.57 crore. The rent will escalate 4.5 per cent every year thereby leading to total payment of over Rs 1,000 crore. According to the documents, the company has leased nine floors starting from 5th till 13th floor in Embassy Zenith. Apple has several engineering teams spread across Bangalore and Hyderabad.
