India, Feb. 7 -- The 25 basis points repo rate cut to 6.25%, the first in nearly five years, announced by the Reserve Bank of India (RBI) on Friday morning, has the potential to alleviate the demand-supply gap in affordable housing at a time when the sector is experiencing unprecedented premiumisation.

"This move will have a positive impact on the affordable housing segment, which is a priority for the government. With lower interest rates, more homebuyers will be able to afford homes, leading to increased sales and improved liquidity for developers," said G Hari Babu, national president of the National Real Estate Development Council (NAREDCO).

"This rate cut will have a positive impact on the overall sector, making home loans more aff...