In a move that is expected to provide significant support to the housing sector, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. According to Anuj Puri, Chairman of ANAROCK Group, this decision, combined with recent taxation benefits introduced in the Union Budget, will undoubtedly boost homebuyers, particularly those in the affordable housing segment.

The reduction in repo rates comes at a crucial time when many first-time homebuyers had been hesitant to make the leap into home ownership. The lowering of home loan rates offers these potential buyers a timely opportunity to secure financing on more favourable terms. As long as banks pass on the rate cut to borrowers, this move is expected to encourage more activity in the residential real estate market.