Indore to witness a flourishing affordable housing market

INDORE: The share of affordable housing in the total real estate sales is expected to grow by over 10 per cent next fiscal year as the policy boost in the Union budget will transform the investor market to an end user market.

The real estate market is likely to change from luxury centric market to affordable housing market in coming years, real estate developers said. Confederation of Real Estate Developers Association of India (CREDAI), Indore chapter president Vijay Gandhi said, “In coming months we expect demand to come for the user based market and the share of affordable housing will increase.”

According to property developers of Indore, affordable housing segment contributes about 20 per cent of the total real estate sales as of now. Gandhi said, “With government push for affordable housing and infrastructure status to the sector, demand from genuine users will increase.” In the Union budget, government gave infrastructure status to affordable housing. Property dealers said that status of infrastructure to affordable housing is expected to ease the process of funding of loans and will provide other related benefits to the real estate sector.

The government also proposed that the National Housing Bank (NHB) will refinance individual housing loans of about Rs 20,000 crore in 2017-18.

According to CREDAI, additional refinance of Rs 20,000 crore from NHB and lower lending rates resulting from increased liquidity in the banking sector would add to the funds for the sector at lower costs to the ultimate consumers. Most of the public and private sector banks have cut home loan rate to 8.65 per cent from 9.1 per cent after increased flow of fund post demonetisation.

SBI national banking group managing director Rajnish Kumar said, “Enquires for home loans have gained momentum and is likely to increase further as banks have slashed home loan rates.” Kumar said any further reduction in home loans is not expected in coming months as that will affect the deposit rates.

Credits ET Realty

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