Real Estate Stocks Today: Godrej Properties, DLF & Other Realty Shares Soar Amid RBI Repo Rate Cut; Nifty Realty Up 4.5%

Real Estate Stocks Today: Real estate stocks boomed on June 6 after the Reserve Bank of India (RBI) announced a 50 basis point cut in the repo rate, reducing it to 5.5%. This move, aimed at supporting economic growth amid moderating inflation, has significantly boosted investor sentiment in the rate-sensitive real estate sector.

Lower interest rates are expected to make home loans more affordable, thereby improving housing demand and encouraging more property purchases, especially in the affordable and mid-income segments.

Realty Stocks Top Gainers

The Nifty Realty index surged 4.45% to 1,037.25, while the BSE Realty index rose sharply by 4.55% to 8,054.96 as of 1:35 PM. Leading the rally was Godrej Properties, which jumped 6.82% to Rs 2,469.45. Prestige Estates followed with a 5.98% gain to Rs 1,723.45, while DLF climbed 5.88% to Rs 874 and Oberoi Realty advanced 5.28% to Rs 1,895.70.

Other gainers included Sobha, up 4.66% to Rs 1,679.60, and Lodha, which rose 3.79% to Rs 1,517.30. Mid-cap and smaller real estate firms also saw positive momentum, with Signature Global up 3.63%, Brigade Enterprises gaining 2.09%, Phoenix Mills rising 1.47%, and Anant Raj Ltd inching up by 0.62%.

What Experts Said?

Anuj Puri, Chairman of ANAROCK Group, said the rate cut was widely anticipated due to easing inflation trends and would directly support buyer affordability. He noted that home loan EMIs are expected to become cheaper, which could significantly boost demand, particularly in the affordable and mid-income housing categories.

Puri also pointed out that the affordable housing segment had suffered the sharpest declines post-pandemic, with its sales share falling from 38% in 2019 to just 18% in 2024. However, a notable 19% reduction in unsold inventory indicates persistent end-user demand.

Also Read: IREDA Share Price Falls After Rs 5,000 Cr Fundraise Plan

Puri further explained that the reduction in the Cash Reserve Ratio (CRR) would help inject more liquidity into the banking system, enabling banks to lend more freely. This would not only allow developers better access to capital, helping them complete projects on time, but would also give banks room to reduce home loan rates.

He cautioned, however, that global trade tensions and increased costs of imported construction materials could dampen the overall benefit, particularly in the luxury and commercial segments. Sustained growth, he said, will depend on further policy support and greater reliance on domestic sourcing.

Echoing similar optimism, Harsh Jagwani, Managing Director at Notandas Realty, called the rate cut a “welcome move” that provides a much-needed boost to both aspiring homebuyers and long-term investors. He emphasized that lower borrowing costs will lift demand across residential segments and also reduce capital costs for developers.

Jagwani observed that the RBI’s shift to a neutral policy stance reflects growing confidence in India’s macroeconomic stability, even as it keeps an eye on evolving liquidity trends. He added that while this could be the final rate cut for the year, the move will spur broader economic recovery across sectors.

Amit Mamgain, Director at Yugen Infra, also praised the RBI's decision, stating that reduced repo rates could further energize demand in both residential and commercial markets.

He pointed out that home loans dipping below 7.75% would make housing more affordable, particularly for middle-income buyers in Tier 2 and Tier 3 cities, where interest rates play a major role in buyer decisions.

According to Mamgain, this cut will not only help borrowers through cheaper EMIs but also build investor confidence and strengthen overall market sentiment.