mumbai any hike of over 2 per cent in homeloan interest rates would have an adverse impact on the real estate sector expert said a 050 per cent hike in interest may make an emotional impact on buyers but if it goes to a level of 225 per cent then it would definitely affect the sector real estate money management and services firm jones lang lasalle meghrajs jllm chairman country head anuj puri told pti here rising inflation is a worry as it would set the stage for further monetary tightening by regulators but hopefully the revised income tax norms will negate the negative impact in the longterm he said while interest rates do have an effect on residential real estate sales the fact is that the newlyrevised income tax norms will negate any negative impact in the longterm puri said in the last budget finance minister assured that the direct tax code which will be introduced in the next fiscal will bring more money into the taxpayers pocket this will help buyers to overcome the interest ratehike he said considering the need for lowcost homes in india the demand for affordable housing will sustain for decades to come he said the shortfall in this segment at this point in time is still in the range of millions and indias evergrowing rate of urbanisation will act as a constant demand catalyst however both affordable and midincome housing will continue on parallel paths since they represent two entirely different and equally valid business propositions to developers puri said