CLSA Predicts RBI Rate Cut to Boost Realty Sector in FY26

Global brokerage firm CLSA forecasts a 25-basis-point interest rate cut by the Reserve Bank of India (RBI) in its June 2025 policy meeting, bringing the total rate cuts for the year to 75 basis points. The firm anticipates an additional 50-75 basis points reduction through the rest of financial year 2026, signaling a favorable outlook for the real estate sector. Lower borrowing costs are expected to drive demand, particularly in affordable and mid-income housing segments. CLSA has reiterated

a, tes, and ck Realty as its top investment picks in the realty space, citing their strong fundamentals and market positioning. Additionally, the brokerage highlighted DLF and Phoenix Mills as likely beneficiaries of reduced interest rates and potential asset revaluation, which could enhance their financial performance. Market expectations are building for a third consecutive rate cut, with some experts suggesting the RBI’s Monetary Policy Committee (MPC) might opt for a deeper cut to bolster liquidity and support economic growth amid global trade tensions. Falling interest rates are poised to create a positive ripple effect across the real estate sector, making it a key area to watch.