Big Home Loans Boosts to Increase Housing Demand in India, Here’s why

08 Dec,2017 | Avirahi Group

The Narendra Modi government last week announced that home loans are all set to become cost-effective. This indicates that the middle-class people will now be able to apply for slightly bigger loans. The loans had earlier slowed own in its normal pace. There are several reasons behind the cause. Since then the consumers had been waiting for a suitable time when the prices will be pulled down. With the new rules announced in July, this year by the Real Estate Regulatory Authority (RERA) the consumers is feeling a little relieved.

A year back the people of the country were in trouble with the demonetization of the notes being announced. Several people who had been aspiring to buy a home had to postpone the plans. This had caused the cost of the unsold homes to rise significantly. Now, the decrease in the cost is expected to spur the purchase of the homes, said the vice chairman of Housing Development Finance Corporation, Keki Mistry. Mistry, however, added that this initiative would not help the second time home buyers. It is clearly meant for the first-timers. As per the new proposal, those who are having annual income up to Rs. 12 lakh will be eligible to buy or build a house up to 1,200 sq. ft. (earlier it was 900 sq. ft.). Again those with their incomes up to Rs. 18 lakh will get the privilege of availing softer loans to buy or build a house of 1,500 sq. ft. (earlier which was 1,100 sq. ft.). The scheme also covers all the purchases that will be made in the secondary market.

Everyone including the managing director of SBI, PK Gupta is expecting a rise in the home loan purchases. Since demonetization, the speed had moderated a lot. From an analysis, it was found that the outstanding of mortgages from Sept. 2015 to Sept. 2016 was 18%. In the following year, it decreased 12.8%. The vice-chairman and MD of Indiabulls Housing Finance, Gagan Banga said that as per the rates how the buyers had always wanted to afford slightly bigger homes in the Tier-II and Tier-II cities have so far not been able to take the advantage of the low-cost loans. They might not make use of the opportunity now but there might be an increase in some of the pockets in south India and in Chandigarh, Ludhiana, and Pune. The demand for the residential property may be revived within the next 12-18 months as per Crisil Research.

Avirahi City in Dholera

Developers are looking for a suitable location where they can offer people with low-cost homes. This is where Avirahi Group has made a smart move. They have already started developing homes in Dholera and named it Avirahi City. They are welcoming people to all the facilities available here. These are houses of several sizes, proper air, road and water transport service available nearby to make communication easier, world-class infrastructure and attractive schemes for availing loans. If you are in search of your dream home, go ahead and make a visit in dholera sir project. We are sure you will find your homes there.

Tags: Dholera SIR project, Narendra Modi government gives big home loan boost to housing india, Pradhan Mantri Awas Yojana, residential projects in dholera sir