Merlin Group MD Saket Mohta welcomes RBI's repo rate cut

Kolkata’s real estate welcomes the Reserve Bank of India’s 25 basis point repo rate cut to 5.25% with open arms, calling it the perfect festive gift as 2025 draws to a close. Saket Mohta, Managing Director of Merlin Group, one of the city’s leading developers, said the decision will directly bring down home loan EMIs and put extra money back in buyers’ pockets. Lower monthly payments are expected to pull many waiting families off the fence and turn them into actual home owners in the coming months.

The biggest winners will be affordable and mid-income housing projects, where even a small drop in interest rates can make or break a purchase decision. Apart from the city Kolkata, areas like Rajarhat, Newtown, EM Bypass, Joka, Howrah and South 24 Parganas, packed with budget and mid-range flats, should see quicker bookings and higher footfall at sites. At the same time, the premium and luxury segment that has been steadily growing in Alipore, Ballygunge and parts of Newtown will also ride the positive wave as overall market sentiment improves. Developers themselves are equally excited because cheaper bank loans mean they can finish ongoing projects faster and launch fresh ones without delay.

“The repo rate cut  by the Reserve Bank of India by 25 basis points is a welcome move for the real estate sector in Kolkata as we close the year 2025. It will further cut down the EMI amount for the home buyers resulting in an uptick in the sale of residential sector. More so it will  likely to boost affordable housing sales and also the sales  mid income segment  in Kolkata which are highly sensitive to  interest fluctuations. It is likely to  further have a positive impact on  premium housing market which is growing in Kolkata. Developers also benefit from lower borrowing costs, which can expedite project completion.”, said Saket Mohta, MD, Merlin Group.