Summary:

The Reserve Bank of India (RBI) has retained the repo rate at 6.5% to maintain stability amid global uncertainty. This consistent rate should make mortgages more affordable. The new tax policy offers a choice between a 20% capital gains tax with indexation or 12.5% without, potentially increasing demand and economic development.

Mr. Anuj Puri, Chairman of ANAROCK Group, stated that the RBI’s decision to keep the repo rate at 6.5% for the ninth time aligns with recent indexation benefits. This stability supports the housing sector by keeping financing rates steady, encouraging homebuyers, and boosting demand, particularly in the affordable segment. The new tax benefits will lower capital gains tax rates, making real estate investments more attractive. According to ANAROCK Research, housing sales in the top seven cities reached 2.51 lakh units in the first half of 2024, the highest in a decade, despite rising costs.

Source: IBEF

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