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CHENNAI.....Good investment opportunities in all the segment of the city. Commercial rentals is on fast trek. Residential segment also having very good demand from rural areas. Outskirts of the city is now more costly then CBD residential areas.   AHMEDABAD..... ..... Huge NRI funds were recently invested in residential segment of the city. Commercial too is feeling the heat. Residential rates are marginally up by 20% since last quarter. The trend is likely to continue.   BANGALORE...... ...IT and ITES are again in the buying spree. Residential complexes are getting good demand. NRIs investments are up again. Service apartment concept is catching up in the city. Commercial lease rentals are rising.   PUNE.... ... Pune is poised as IT centre by the developers. In fact many leading IT brands are in the city. It has enhanced the residential rates. Outskirts like Viman Nagar, Pimpari and Chinchwad also now having great demand. Good time ahead.   DELHI .... ...The market is slow for residential units. Noida and Gurgaon also have touched historic level. New zones are in the competition. Faridabad and Merut along with Rohtak are busy catering for demand in Delhi and NCR    MUMBAI.. ..... ..Realty Fund and investors of large real estate holdings are still maintaining the price level. Developing zones are feeling heat. Small pocket developers are also panic in the market. Residential prices stagnated as of now.

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Interest on Home Loans may fall

By AT Bureau


 

Nationalised Banks have increased interest rates on home loans are not sustainable since demand for home loans on much cheaper interest rates have established a bench mark rate for home loans. After RBIs interventions and caution notice, Banks started taking extreme majors to reduce the risk of turning lendings into NPA. In spite of no major risk factor coming into way, banks started enhancing their basis points on home loans. Industry peers thinks that it is nothing but maximisation of profit on robust growth of real estate sector.

HDFC, the pioneer in home loan concept, still offer home loans at 11 % p.a and HUDCO kept it at 10.75%. Foreign Banks are reaping a good harvest after Nationalised Banks raised interest rates on home loan.

According to NHB, in 2003 to 2005, housing finance market witnessed 73% growth in sanctions. The trend continued till late 2006 when interest rates started climbing up. The demand for housing never declined. So does the demand for home loans.

Finance Ministry recently intervened the situation and compelled the banks to offer cheaper rate of interest for loans upto Rs.20 lakh. Housing and real estate is being in priority sector in RBIs list, banks are compelled to give loans for housing. According to sources, Finance Ministry have taken the matter very seriously and intend to bring out formula for reducing home loan interest offered by Banks.

In the process, banks will be asked to reduce the rate of interest. A PLR is soon likely to be announced by the apex bank. The action is likely to be in action by end of July this year.

With reduced demand for higher rate home loans, Priority sector lending norms of RBI and growing competition, housing finance institutions and banks are likely to reduce the floating rate of interest before October 2007.