GURGAON: The RBI's decision to maintain the repo rate at 6.5% for the ninth consecutive time, coupled with recent indexation benefits , is expected to positively impact the housing industry. Industry leaders believe that stable interest rates will ensure consistent borrowing costs, encouraging more potential homebuyers to enter the market and thereby boosting demand.
Steady interest rates mean manageable EMIs for current and future homeowners, potentially leading to increased home sales, particularly in the affordable segment. Anuj Puri, chairman of Anarock, a real estate consultancy firm, noted that the union government's indexation announcement offers tax advantages for property investors by allowing adjustments to the purchase price for inflation, thus reducing capital gains tax burdens upon property sale. "This provision enhances the appeal of real estate investments, driving demand and capital flow into the housing sector.
These combined actions bolster investor confidence and position real estate as a long-term wealth growth avenue," he added. City based realtors are also optimistic about the decision, expecting overall growth driven by rising housing demand due to favorable interest rates and taxation policies. Pradeep Aggarwal, founder & chairman of Signature Global (India) Ltd.
, stated, "The RBI’s decision to keep rates unchanged is expected, aiming to control inflation. With a good monsoon, the apex bank might lower interest rates in the coming months, further pro.