The Real Estate Market Is Going to See a New Surge This Festive Season
There are a number of reasons why people decide to get off rental housing and dream of buying their own house. A self-owned home can never come into any comparison when it is about giving financial security and poise. So, if you are looking for having a home of your own and trying to take the best opportunity of this festive season, this post is going to help you in more than one way.
Especially, with the sentiment of Pune residential property market taking a significant drift in 2016, the investors have actually found a new glide to invest in new properties.
How has the reduced REPO rate by RBI proved to be a boost for the home buyers?
Indian festive seasons are always marked with immense prospects and now with RBI cutting down the rate to boost up affordable housing demand, it has become a win-win situation for the home buyers. The RBI has now reduced the lending rate/ REPO rate by 25 basis points at its third bi-monthly policy review. It is, quite undoubtedly, going to give the affordable housing market a considerable lift up. The central bank has reduced the REPO rate by 175 basis points since December 2014. Nevertheless, the lending rate has never been in line.
How RERA has restored the confidence of the buyers?
Also, now that RERA is in place, it seems to be a great time to buy a home. Also, with RERA not being implemented in all the states and GST rolling out in July, it is very difficult to understand whether it would affect the property price. As per the data given by Knight Frank, there has been 41% of crash in new launches in the first half of 2017 which is the lowest fall in last seven years. The sales volume has also declined by 11% during the same period. This has again been the lowest first half sales in past 5 years. Even though the demand has been very low, the real estate sector is betting on festive seasons to give a push to this slow real estate market.
Many builders and developers who want to overcome this crisis are now using the advantages of input credit tax to make more sales by giving GST benefits. Now that RERA has paved in complete transparency in the system, home buyers have gained confidence in the real estate market.
How are banks attracting home buyers in this festive season?
Also, to bring in a relief to the real estate market, especially to the affordable housing sector, RBI has cut down the rates to 6%. Banks are rolling out interesting offers for home buyers to grab their interest such as, low interest rates, low processing fees, no hidden cost or administrative charges, no pre-payment penalties, no EMI till possession, subvention schemes etc.
How has the reduced home loan rate become a propeller for the home buyers?
In the past six years, the home loan rate has fallen to the lowest rate and today, banks like SBI, HDFC and ICICI are offering home loan rates as low as 8.35% to 8.80%. Now, any home buyer can afford an EMI of anywhere between Rs. 835 and 900 per Lac. Some banks are also offering 100% waver of processing fees on their festive offers.
Home loans up to 30 Lac are charged in an interest rate of 8.35% to 9.75%, more than Rs 30 Lacs and up to Rs 75 Lacs are with 8.50% to 9.75%, more than Rs. 75 Lacs and up to 3 Crores are with 8.70% to 10.75% and loans more than 3 Crores are charged with 8.70% to 11.75%. This Diwali, Banks will come up with new offers to attract home buyers.
How are the smart offers by the builders attracting the home buyers to the fullest?
Now that Diwali is coming in, it is going to be a big festive period in India. Festivals like Dushera, Laxmi Pujan and Diwali are considered to be the most auspicious days to buy a new home. To give a push to this sluggish real estate market, many builders and developers would roll out attractive offers to boost their sales. These offers would consist of wavers of different kinds, discounts, GST benefits and many more. As there was no act to monitor real estate before, with RERA in place, the home buyers have got confidence and will take benefits of such offers by the builders.
The real estate market is expected to raise up yet more. Real estate, being the most preferred sector to invest in, calls for the most eligible investors from every nook and corner. Especially with RBI cutting its repo rate, home loans are expected to go low-priced than ever. With this, there can be a good appreciation in the market, leaving the home buyers with no urge for price correction.
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