Capital gains taxation adjusted for inflation could reshape the real estate sector significantly. The mechanism is straightforward: by indexing gains to inflation, real property owners face reduced tax burdens on transactions, potentially unlocking liquidity that's currently locked due to tax friction. This matters because housing markets suffer from supply constraints partly driven by owners hesitating to sell amid unfavorable tax treatment. Beyond market mechanics, the fiscal side deserves attention—such an adjustment would generate substantial government revenue while paradoxically lowering transaction friction. Economic observers note this represents a nuanced approach: maintaining tax principles while improving market efficiency. The policy framework hinges on a simple reality: when sellers face lower barriers to reallocating assets, capital flows more freely. This isn't just about housing—it signals how thoughtful policy design can balance revenue collection with market dynamism.