All time-low home loan rates : Home loan borrowers can now get an annual interest rate of 6.65 percent. In January 2020, the average home loan interest rate was 8%, so this is a significant difference
Home loans : Home loan rates are available at the lowest interest rate in the last 40 years. Expect this low interest rate to continue for another six to twelve months. So this is the perfect time for people looking to buy a home.
The country’s economy and real estate growth are on the verge of sharp growth. However, the market risk is unpredictable as the 2nd wave of the Corona is rocking India. But the chances of it being low are high.
Thus, the Reserve Bank is paying the much needed cash flow in the market. As well as a number of government and developer concessions such as stamp duty exemptions that have expanded the best buying opportunity for homeowners.
For lending purposes, banks now differentiate between strong and bad developers. So improving balance sheet performance, avoiding excessive influence and being well-capitalized will help developers stay well in the market.
As India’s corona virus vaccination campaign continues, the benefits of the vaccination program can be seen in the country’s real estate market. Home sales in India’s major residential markets increased by almost 70% in the third quarter, following a record decline in the previous two quarters due to a sharp increase in the number of epidemics. New supply has also increased significantly.
Despite the sluggishness in some cases, housing prices in key markets have begun to recover. This indicates that the consumer has recognized the value of real estate and wants to use lower home loan interest rates. Interest rates have significantly affected sales growth since the end user expected it and received it.
If there is any indication of rising housing affordability, sales in India’s residential real estate market will increase in the coming months. By 2021, the supply of new housing will be affordable and in the middle because developers are trying to use more incentives. However, there are speculations that the demand for residential real estate in India may be affected due to the sharp increase in new corona virus cases in India.
As a result of the increase in the spread of the disease, much of India, especially Delhi, Maharashtra, Rajasthan, Odisha and Gujarat, are now subject to restrictions, including curfew orders. The second wave of Govt-19 epidemic is causing concern in the sector. There will be no problem if there is logistics and supply chain support and migrant workers on site.
Despite the Reserve Bank’s decision to keep the repo rate unchanged, home loan borrowers can now receive an annual interest rate of 6.65 per cent. In January 2020, the average home loan interest rate was 8%, a significant difference. However, buyers need to make a quick decision to buy a home because the situation may change if the position of the banking system changes.
SBI raised interest rates on home loans in April, despite the Reserve Bank’s decision to keep policy rates unchanged on April 7, 2021. This indicates that banks may move away from the current historically low interest rate regime.
Due to the effects on demand, housing price growth has also slowed over the past year. Although they feel the heat of rising raw material costs, developers have avoided raising prices. Overall, the market is ideal for homeowners to make their dreams come true before the market returns to the old interest rate regime and developers raise prices, which is expected to happen in the next 6-12 months.
