Indian property prices are to go up in coming days. The resurgence of property price attributes to the recent couple of policy changes of Indian government. Government is now aiming to attract global revenue into domestic economy. Affordable housing sector is supposed to be the key resource with which government is targeting to bring in. Meanwhile, rumour has it, both residential and commercial business in the country are about to see a corresponding slowdown.
At present developers are busy in reframing their business and the procedure of project registration with regulatory authority and they are very much annoyed with the rigid provisions of RERA. Sustaining business under RERA intervene won’t be that straightforward. There’s a double digit jump in home loan sector derived from loans of lesser than 25 lac in value. Affordable housing sector alone contributed 30% of the total procurement. 33 percent overall surges in home loan over a year earlier.
There is also another report which far from the original which said that there was a decline of one per cent in the number of home loan disbursements of over Rs 25 lakh in value. It can be mentioned as a slowdown anyhow, even though the margin is negligible. Up till now this calculation stands less than a fourth of the total number of home loans disbursed. Especially, the share of loans of more than Rs 25 lakh, disbursed for home loans came down to 24 per cent from 30 per cent the prior year. This holds solid and glaring that in 2016-17 a higher number of people preferred to seek loans of minor denomination, in comparison with 2015-16. Also, regardless of a decline in the number, the total number of loan disbursements during the year raised 23 per cent.
Speaking about the low budget flats under PMAY, it’s foreseen with this pace of project development it’s impossible for affordable housing sector to meet the deadline of 2022. Both the rural and urban projects under central government flagship are mostly on calendar. Even 30% of the project development is not accomplished in a right manner. Low-budget flats in Kolkata and its outline areas are yet to be materialized. Between FY 2016-17, a new trend has been observed in home loan disbursement sector i.e. - a huge slog of 48 per cent in the number of loans of up to Rs. 2 lacs which is also an upshot of government’s push to promote ‘Housing for All by 2022’. In this horse race luxury housing sector has been constantly encountering lower market demand successively. New project launch and luxury property sale have been notably reduced post GST. Yet mid budget flats, those are ranged under Rs. 50 lacs are still in demand. But residential properties with price tags of Rs 1 crore and more are detectably going under on-hand inventory category. These hi-end properties are mostly from the tier I cities.
From its inception till now affordable housing sector has been the centre of the attention of the administrative policies. Accordingly, the developers have been directed towards the development process of budget housing instead of luxurious one. Thus, there is a decline in contention for hi-end residential developments.
-LNN (Liyans News Network)
At present developers are busy in reframing their business and the procedure of project registration with regulatory authority and they are very much annoyed with the rigid provisions of RERA. Sustaining business under RERA intervene won’t be that straightforward. There’s a double digit jump in home loan sector derived from loans of lesser than 25 lac in value. Affordable housing sector alone contributed 30% of the total procurement. 33 percent overall surges in home loan over a year earlier.
There is also another report which far from the original which said that there was a decline of one per cent in the number of home loan disbursements of over Rs 25 lakh in value. It can be mentioned as a slowdown anyhow, even though the margin is negligible. Up till now this calculation stands less than a fourth of the total number of home loans disbursed. Especially, the share of loans of more than Rs 25 lakh, disbursed for home loans came down to 24 per cent from 30 per cent the prior year. This holds solid and glaring that in 2016-17 a higher number of people preferred to seek loans of minor denomination, in comparison with 2015-16. Also, regardless of a decline in the number, the total number of loan disbursements during the year raised 23 per cent.
Speaking about the low budget flats under PMAY, it’s foreseen with this pace of project development it’s impossible for affordable housing sector to meet the deadline of 2022. Both the rural and urban projects under central government flagship are mostly on calendar. Even 30% of the project development is not accomplished in a right manner. Low-budget flats in Kolkata and its outline areas are yet to be materialized. Between FY 2016-17, a new trend has been observed in home loan disbursement sector i.e. - a huge slog of 48 per cent in the number of loans of up to Rs. 2 lacs which is also an upshot of government’s push to promote ‘Housing for All by 2022’. In this horse race luxury housing sector has been constantly encountering lower market demand successively. New project launch and luxury property sale have been notably reduced post GST. Yet mid budget flats, those are ranged under Rs. 50 lacs are still in demand. But residential properties with price tags of Rs 1 crore and more are detectably going under on-hand inventory category. These hi-end properties are mostly from the tier I cities.
From its inception till now affordable housing sector has been the centre of the attention of the administrative policies. Accordingly, the developers have been directed towards the development process of budget housing instead of luxurious one. Thus, there is a decline in contention for hi-end residential developments.
-LNN (Liyans News Network)
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