The Reserve Bank of India (RBI) has maintained the repo rate at 6.5%, focusing on stability amidst global uncertainties. This steady interest rate environment is expected to make home loans more affordable. Additionally, the government’s new tax policy allows taxpayers to choose between a 20% long-term capital gains tax with indexation benefits or 12.5% without indexation on properties acquired before July 23, 2024. This policy will likely boost demand, driving sales, construction activity, and economic growth.
Chairman of ANAROCK Group, Mr. Anuj Puri, noted, “The RBI’s decision to keep the repo rate unchanged at 6.5% for the ninth consecutive time aligns with the recent announcement on indexation benefits. It sets a positive tone for the housing industry by providing consistent borrowing costs, encouraging homebuyers, and driving demand, especially in the affordable segment. The new tax benefits will reduce capital gains tax burdens, enhancing the appeal of real estate investments.” According to ANAROCK Research, housing sales in the top 7 cities reached nearly 2.51 lakh units in the first half of 2024, the highest half-yearly sales in a decade, despite rising prices, which increased by 13-39% in the second quarter of 2024 compared to the second quarter of 2023. The stable repo rate and potential future rate cuts offer a favourable environment for home loan borrowers, making it an opportune time for new purchases and loan repayments.
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