New Delhi: Reserve Bank of India (RBI) has decided to reduce the repo rate by 0.25 percent which came as a little relief for the builders and home buyers. Repo rate is the rate at which RBI lends money to commercial banks which is now reduced to 7.25 per cent. Commercial banks will most likely decrease the interest on the loans due to the reduction in the repo rate. Real estate sector has welcomed the reduction and will seek for the more reduction in future.Many developers and builders have appreciated the decision of the Reserve Bank of India (RBI) though the reduction is small. DLF Group said that the reduction is too small which will not boost the economy positively unless the commercial banks and companies apply the rate cut to consumers.Confederation of Real Estate Developers’ Associations of India (CREDAI) said that the RBI’s decision will relieve the EMI burden of common home buyers after the reduction of interest rates. Credai insisted RBI to eradicate the negative impact of the real estate and focus on affordable housing so that commercial banks can help improving the sector.Sanjeev Srivastava said that decision will boost the sluggishness of the real estate investment activity as the interest rate is an important factor in economy.Samir Jasuja CEO of PropEquity welcomed the repo rate cut and said that real estate requires more rate reduction and they also hope that RBI will keep on improving their focus towards real estate. Chartered Surveyors (RICS) South Asia, Managing Director Sachin Sandhir has also showed the similar views on the rate cut.