What is the impact of government policies on housing prices?

Government policies significantly influence housing prices, buyer sentiment, and market stability.

• Subsidies & Schemes – PMAY provides home loan interest subsidies for EWS and LIG groups, boosting affordability and demand.
• RERA (Real Estate Regulation & Development Act) – Increases transparency, ensuring timely project completion and higher consumer confidence, which raises demand.
• Lower Interest Rates – RBI's repo rate cuts reduce home loan costs, encouraging purchases and driving property price appreciation.
• Tax Incentives – Income tax deductions on housing loan principal and interest payments encourage home ownership.
• Stamp Duty & Registration Policies – Reductions in stamp duty, as seen in Maharashtra, can boost short-term sales and price trends.

Pro-buyer policies, market regulation, and low-interest rates contribute to long-term price growth in key real estate markets.