After years of selling affordable luxury homes, claiming facilities like affordable housing, affordable golf courses and Jacuzzis for affordable housing, builders are finally moving towards smaller apartments in line with the middle-income income.
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Why and when did the change come-in to play?
- This is a clear indication of the rapid increase in home loans, driven by the sale of homes costing less than 30 lakh rupees.
- This change in builders was done this year’s budget, which gave concessions to the attractive housing segment and tax concessions in interest rates.
- This year, in view of the demand for nearly non-existent corporate debt in almost all bank loans, loans were included as well.
Further Details on the Home Loans for Affordable Housing
The Chairman of HDFC Mr. Deepak Parekh mentioned a change made in December which stated that corporation loan applications increased by 21%. In February’s application was more than 24%, and March was 44% more than the previous month.
How is it being implemented on Affordable Housing?
- “What is this development going on, it is not a high-value property, but affordable housing, assuming that the average loan size of the corporation is 25.6 lakh rupees. It is for the first time that the average loan size of HDFC has decreased from Rs 26 lakhs, he said, property experts say that Ahmedabad is the largest contributor to such houses (costs less than Rs 30 lakhs), followed by Pune (50 Lakhs) and in some areas of the Mumbai Metropolitan area.
- Housing finance providers are now hoping that under the Prime Minister’s Housing Scheme, there will be an increase of 25% in the area of affordable homes under subsidy. This scheme is available until December 2017, which provides 3% subsidy on loans up to Rs 12 lakh for 4% subsidy on home loans up to Rs 9 lakh and earning up to Rs 18 lakh per annum for those earning up to 12 lakhs per year. Offers. Pankaj Kapoor, Managing Director, Real Estate Research firm, Lysis Fours, said that the increase in maximum sales on the quarterly basis (31%) was recorded in the cheap segment (property below Rs 25 lakhs), while in the ultra-luxury segment sales The decline in 4% was estimated to reduce profits in the period from October to December 2016, but between January and March 2017 the demand was justified.
- Developer Niranjan Hiranandani said that his Thane project with flats of less than 600 sq ft was fine. He said, “When more projects will start coming into the market and people will start getting benefits in tax, then more will be increased.”
- Mortgage Company Indiabulls Housing told the investors that for effective borrowers demanding Rs 24 lakh, either by paying or by the decision of subsidy, will pay only 0.42%.
- The viable home credit rate at the mid-pay moderate lodging fragment is at a close to zero level. With rental growth at 3.2%, house rent is owned by a much cheaper home.
Limit of the rate of loans
Loans are being made available to more than 12 lakhs or less for maximum housing accommodation units. Now there are many types of housing finance companies. Which traditionally target customers not getting loans. “Traditionally, credit assessment was done entirely in the form of documentation, and mainly people with salary slips and IT returns could avail the loan. Now some firms are able to evaluate the credit using alternative methods or mechanisms for those in the informal segment. ”
It’s effect under the Pradhan Mantri Awas Yojana
Under the PMAY for economically weaker sections (EWS) and low-income groups, incentive accommodation in the finite areas will increase the housing on a large scale with sub-disciplines. There is a great help to give “These drivers, along with the industry’s efforts to create awareness, are helping to increase financial inclusion. The affordable housing segment is likely to grow faster than the industry by more than 25%. ”
The PMAY plan comes after the Union Budget proposals In addition to this, those who make affordable homes for developers are exempted from payment of taxes on their benefits from 2016 to five years instead of three years. These four metro cities have 600 square feet of 300 square feet homes and non-metro areas.
A report by Investor Bank CLSA states that in addition to interest subsidy, demand for 90% of provident fund funds for domestic purchases is increasing, demand is increasing. Rohit Inamdar, group head of Financial Sector Ratings said, “Growth in the Prime Home Loans Segment may be slow but the affordable housing segment is likely to grow rapidly.”