Real estate developers across India’s top markets are reporting a rise in buyer enquiries, as banks slash home loan rates in response to recent repo rate cuts. “On the demand side, there has been a marked increase in enquiries from potential homebuyers, particularly in the mid-income segments (homes priced between ₹40 lakh and ₹1.5 crore),” said Niranjan Hiranandani, chairperson of Hiranandani group and of the National Real Estate Development Council, under the Ministry of Housing and Urban Affairs. Home purchase affordability improved across key Indian markets in the first half (H1) of calendar year (CY) 2025, after the Reserve Bank of India (RBI) reduced the repo rate by 100 basis points (bps) during the period, according to real estate consultancy Knight Frank India. Last month, State Bank of India cut its home loan rate by 50 bps. The bank now offers home loans at 7.5–8.45 per cent, down from 8–8.95 per cent earlier. Canara Bank reduced its rate to 7.4 per cent from 7.9 per cent, while Bank of Baroda trimmed it to 7.45 per cent from 7.5 per cent. HDFC Bank, Punjab National Bank, and Indian Bank also cut their marginal cost of funds-based lending rates (MCLR) by 30 bps, 5 bps, and 5 bps, respectively, across select tenors — a move likely to benefit borrowers with MCLR-linked loans. MCLR is the benchmark rate that determines the minimum interest banks can charge on loans. According to Square Yards, home loans above ₹1 crore accounted for 21 per cent of total disbursements in 2024–25 (FY25). Loans below ₹45 lakh made up 47 per cent, while those between ₹45 lakh and ₹1 crore comprised the remaining 32 per cent. The average home loan size in India’s top cities reached ₹74 lakh in FY25, up 5 per cent year-on-year (Y-o-Y). Anuj Puri, chairperson of Anarock group, observed that serious enquiries in more affordable markets like Pune, Bengaluru, Hyderabad, and the National Capital Region (NCR) have risen by 8–12 per cent. In Delhi, Gurugram, and Mumbai, the increase was between 4 and 6 per cent, following the last repo rate cut. Lower rates ease the cost of borrowing, improving affordability for homebuyers. “Affordable home loan rates always act as a cat­alyst for real estate activity. Buy­ers have started making decisions over the past couple of months. We’ve seen more enqu­iries, pos­sibly due to increased disposable income and market optimism,” said Ashok Kapur, chai­r­­person of NCR-based Krish­na group and Krisumi Corporation. ALSO READ: Meghalaya govt sets up real estate regulatory authority under 'Rera Act' The rate cuts come at a time when housing sales have been slowing, largely due to affordability concerns. According to Anarock, residential sales in H1 CY 2025 fell 24.32 per cent Y-o-Y to around 190,000 units. Amit Jain, chairperson and managing director (MD) of Arkade Developers, noted a pickup in interest, especially among fence-sitters. “Affordability remains a concern, but there’s growing intent among salaried professio­nals and first-time buyers in the mid and upper-mid segments,” Jain said. In the second quarter of CY2025, average residential prices rose just 1 per cent quarter-on-qu­a­rter but climbed 11 per cent Y-o-Y across the top seven cities. How­ever, the annual price growth sho­wed signs of cooling, Anarock said. Vimalendra Singh, chief business officer (residential) at Mahindra Lifespaces, said he hasn’t seen a spike in enquiries yet but described demand as “organically robust”. Rate cuts, he added, “may take time to show up in business”. Tata Realty and Infrastructure MD and Chief Executive Officer Sanjay Dutt echoed the view. “It may take a quarter or two for policy changes to reflect in sales, but we expect a rise in enquiries and conversions this quarter, helped by the festival season.” Developers remain optimistic, expecting demand to pick up in the upcoming quarter as interest rate benefits gradually trickle in. Brigade group Chief Operating Officer (Residential) Viswa Prathap Desu said lower rates would help push buyers toward quicker decisions. “We foresee an uptick in residential bookings over the next two quarters, especially in the mid- and premium segments.”