In June 2015, Reserve Bank of India decreased the repo rate by 25 points from 7.5 per cent to 7.25 percent. This move is welcomed by all developers gladly as they feel it will help curb some of the negative sentiments in the real estate and the economy as a whole.
The move was made with an aim to drive the growth further up and is expected to be a boon for the real estate system. The lowered rate will reduce the interest on funds both for the buyers as well as developers as the banks will now lower their interest rates.
The real estate sector is expected to boom as a derivative of this effect. The people will now have more buying capacity and the sales are expected to rise. The developers are now banking on these sales to increase their revenue and in turn reduce their debt which had accumulated during the recession. The situation is also seen positively by the buyers as can now take advantage of the lower interest rate and approach the banks for home loans confidently.
In Indirapuram the market was particularly sluggish and the sales were very low. With the new move, the sellers are hoping to sell off the large inventory, especially the affordable housing segment.
Benefits of the rate cut:
Some of the major benefits of the move are discussed in detail.
More projects in Affordable Housing:
Earlier the developers were reluctant to build affordable housing projects as it brought in fewer profit margins. There were more concentrated on building luxury spaces that fetched more profits. With the reduced interest rates, many developers have decided to introduce projects in this section. Home loans interest rates greatly affect the buying decisions of the middle class buyers as most hugely depend on these loans to acquire a space of their own.
Reduced EMIs attract buyers:
As the interest on home loans decrease it has a direct effect on the EMIS the buyers have to pay every month. This is a huge relief for the buyers as their financial burden is reduced considerably.
Increase in real estate demand:
The political instability and the recession had taken its toll in the real sector in India making it sluggish. Buyers from major cities, especially the Tier I cities were waiting for price corrections to buy a space of their own. The rate cut is hoped to bring alive the dampened buyer sentiments which will be converted positively to conversion rates and sales volume.
Reduced interest rate in home loans:
The repo rate have been cut for the third time this fiscal year and as an effect the interest on the home loans have been reduced too. In this April, all the major home loan banks and corporations reduced their interest rates from 10.1 percent to 9.85 percent.
Taking into account the current fiscal policies and real estate market trends, the time is ripe to get a space for yourself. The wait has ended for many as properties have become more affordable.
Is Delhi-NCR real estate moving sluggish
If the recent trends in real estate market in Delhi are to be believed, there is a significant dip in the units sold in the capital and NCR in the last 18 months. The sluggish trend has been whistled by lack of incentives from the administration which is focussing on clearing infrastructure road blocks rather than giving green signal to new projects. With paper works in the backlog, new projects in Delhi are at pause, at least for the rest of the year 2015.
Tips for new residents in Panvel to understand their locale better
Panvel has seen a major transformation from a sleepy suburb to a satellite town and finally to a full-fledged city. The growing population willing to reside in the Mumbai MMR region, the shortage of adequate real estate destinations in Mumbai region has made investors and buyers look at Panvel as their best option. Panvel was famous from its lush green surroundings and farm houses. With changing times and inflow of population there are abundant new projects available in Panvel for investors and buyers alike.
Looking for a green living space in Zirkapur Here are options
Zirakpur located near Chandigarh and part of the tri city comprising of Chandigarh, and Mohali is one of the most popular real estate destinations. While Mohali and Chandigarh investors have had the luxury of investing in properties located closer to nature with lush green belts and parks, Zirakpur residents often faced concrete jungles.
