Housing Sector Sees Boost in Optimism with Steady Repo Rate and Indexation Benefits
India Business News: The RBI's decision to maintain the repo rate at 6.5% and recent indexation benefits are expected to positively impact the housing industry.
Housing SectorRepo RateIndexation BenefitsReal EstateHomebuyersReal Estate NewsAug 08, 2024
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.
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,
Frequently Asked Questions
What is the current repo rate in India?
The current repo rate in India is 6.5%.
What is the impact of steady interest rates on the housing sector?
Steady interest rates mean manageable EMIs for current and future homeowners, potentially leading to increased home sales, particularly in the affordable segment.
What is the benefit of indexation for property investors?
Indexation offers tax advantages for property investors by allowing adjustments to the purchase price for inflation, thus reducing capital gains tax burdens upon property sale.
How will the RBI's decision to maintain the repo rate impact the real estate sector?
The RBI's decision to maintain the repo rate at 6.5% for the ninth time in a row is expected to positively impact the real estate sector, particularly in luxury residential and commercial segments.
Which real estate companies are mentioned in the article?
Anarock, Signature Global (India) Ltd., 4S Developers, and Navraj Group are the real estate companies mentioned in the article.
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