After selling house with facilities like golf course and jacuzzi, the builders are now heading towards making affordable house Builders are now building a house that can afford middle class. The reason for this is that demand for Home Loans has increased rapidly with sales of homes priced below Rs. 30 lakhs. This idea come to the builders from this year’s budget, offering attractive tax and interest-free rebate for affordable housing. This year the amount of money that has been credited to banks has come through a half-house loan.
According to HDFC Chairman Deepak Parekh In January, compared to December in the bank, home loan applications saw an increase of 21 per cent. In February, the number was 24 per cent, and in March, 44 per cent increase in home loan applications compared to the previous month. He said, “This is not a high-priced property, but Affordable Homes behind this edge. Till now, our average home loan size is 25.6 lakh and for the first time in many quarters, the average home loan size of HDFC has come down to 26 lakh.
According to property experts, there are more such houses (less than Rs 30 lakhs) in Ahmedabad. After this, there are some areas in Pune (below Rs 50 lakh) and in some parts of Mumbai.
Housing Financing Buyers hope that the subsidy given under the Prime Minister’s Housing Scheme will get an increase of 25 per cent in the Affordable Home Loan Segment. This scheme will be effective till December 2017 and it will earn 12 lakh rupees annually for those who earn 4 lakh and Rs. 18 lakh annually for a loan of 9 lakh rupees for a loan of 12 lakh rupees.
Pankaj Kapoor, MD of real estate research firm Lysas Foras said that the Affordable Segment (at less than 25 lakhs homes) registered a 31 per cent increase in quarterly quarter-on-quarter basis. In addition, the ultra-luxury segment sales fell 4 percent. Due to the demonetization, demand was seen between October to December 2016, but between January and March 2017, there was a good demand.
Developer Niranjan Hiranandani said that the sale of 600 square feet houses in his Thane-based projects was good. He said, “When more projects come in the market and people will get tax benefit then more speed will be seen.
According to Subhash Chennuri, who works as a senior consultant with consulting firm FSG, more loans are being given for homes less than 12 lakhs. There are many companies that are working in keeping in mind the customers who were not able to get a loan on conventional basis. He said, “Traditionally, on the basis of credit evaluation and those who filling income tax returns and job seekers, they got a loan. Now there are some companies that are doing credit assessments in other ways.
The Central Government launched the Prime Minister’s Housing Scheme. In this, developers who make Affordable House will be exempt from paying tax for five years instead of three years. This limit came into effect from 2016. It will apply to 300 square feet in metro cities and 600 square feet in non-metro area.
Investment bank CLSA said in a report that in addition to the interest deduction, 90 per cent of the PF has been used since the plan to house the house has increased demand. Rohit Imaandaar, group head of Finance Sector Rating, said, “Where the decline is happening in the prime home loan segment, the Affordable Housing Segment is growing rapidly.”