Steady repo rate and indexation benefits drive real estate market

08 Aug 2024 CW Team

The RBI's decision to keep repo rates unchanged at 6.5% for ninth consecutive time aligns well with yesterday's announcement on indexation benefits. It sets a positive tone for the housing industry. Maintaining interest rates offers consistency in borrowing costs, which will prompt more aspiring homebuyers to consider taking the plunge - and thus drive demand in the housing market. With interest rates staying steady, EMIs will remain manageable for current and potential homeowners, potentially leading to increased home sales - particularly in the price-sensitive affordable segment.

The announcement regarding indexation brings tax advantages for property investors, as it permits adjustments to the purchase price keeping inflation in mind, reducing capital gains tax burdens upon property sale. This provision increases the appeal of real estate investments, which will spur demand and capital flow into the housing sector. These combined actions bolster investor trust and position real estate as an avenue for long-term wealth growth.

As housing demand rises due to favourable interest rates and taxation, we can expect overall boosted growth. This will encourage more project construction, job opportunities and broader economic gains. The collective impact of these measures improves affordability levels and boosts demand dynamics in India's housing segment.

Housing sales across the top 7 cities have been phenomenal in the last few quarters, even though prices are rising steadily. As per ANAROCK Research, we saw total housing sales of nearly 2.51 lakh units across the top 7 cities in H1 2024 - the highest half-yearly sales in the last decade.

Meanwhile, average residential prices across the top 7 cities have seen a significant jump in the last one year ? ranging between 13-39% in Q2 2024 when compared to Q2 2023. Thus, the breather which RBI?s unchanged repo rate will provide to home loan borrowers is apt and welcome.

By - Anuj Puri, Chairman - ANAROCK Grou

Real Estate

02 Apr 2026

Bent Collective Unveils Sculptural Papillon Sofa

Bent Collective has introduced the Papillon Sofa, a sculptural seating piece that combines artistic design with everyday comfort. Defined by a fluid silhouette, the sofa features a gently curved backrest, asymmetrical form, rounded seating, a single rolled arm and sleek legs, creating a soft yet expressive presence for contemporary interiors. Upholstered in a soothing blue tone, the Papillon Sofa is designed to bring a sense of calm, movement and visual lightness to living spaces. Its organic form moves away from rigid lines, reflecting the brand’s focus on furniture that is both i..

MHIEC Completes Relay Centre Project In Nagasaki

Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC) has completed construction of the Nanbu Relay Center in Minamishimabara City for the Ken’ou-Kennan Clean Authority in Nagasaki Prefecture. The project includes the development of the new facility and the operation of three relay centres, including the existing Tobu and Seibu sites, under a contract awarded in 2024. The initiative is aimed at enabling the efficient transfer of combustible waste from multiple municipalities to the Ken’ou-Kennan Clean Center in Isahaya City, which is scheduled to co..

Kala Ghoda Boutique Redefines Compact Retail Design

Located in Kala Ghoda, Noir Éclat, an 80 sq ft jewellery boutique by Mint Leaf Design, showcases how compact retail spaces can deliver a high-impact experience. Designed as a ‘jewel box’, the boutique blends Parisian-inspired aesthetics with a monochrome palette of black and white, highlighted by fuchsia accents that add a distinctive visual identity. The design leverages vertical space to overcome size constraints, featuring sculptural wall-mounted busts arranged in grids that transform product displays into artistic installations. Carefully planned lighting enhances depth and creates a..