Housing Prices Home Loan Rate: Housing Sector Witnesses Resilience Despite Price and Loan Hike

Home Loan Rate: The housing sector has displayed remarkable resilience in the face of soaring property prices and a 2.50 percent increase in home loan interest rates. Surprisingly, these challenges have not deterred homebuyers, with the first quarter of 2023 recording an impressive 15 percent surge in property demand.

Industry experts, including the National Real Estate Development Council (NARDECO) and Housing.com, have shared their insights into the sentiments prevailing in the housing sector. Their outlook suggests that despite the escalating costs of homeownership, there’s a substantial uptick in housing demand anticipated for the second half of the year. Notably, 59 percent of potential homebuyers are actively seeking ready-to-move-in homes that align with their budget constraints. Of these, 58 percent prefer purchasing houses directly from builders, while 42 percent are inclined towards buying resale properties.

Rajan Bandelkar, President of NARDECO, underscores the significance of stamp duty and Goods and Services Tax (GST) exemptions in facilitating home purchases. He believes that such financial incentives can prove to be immensely beneficial for prospective buyers grappling with rising property prices and expensive home loans.

Intriguingly, homebuyers are placing a premium on discounts, gifts, and incentives when making their housing decisions. Amenities such as stamp duty and GST waivers, free maintenance periods, guaranteed rental income, and secure gated communities are garnering significant attention. Additionally, when seeking their dream homes, buyers are giving prominence to value-added features like modular kitchens, chimneys, cabinets, bespoke woodwork, lifetime club memberships, refrigerators, air conditioning, home automation systems, and water purifiers, all of which are integrated into the housing units.

The housing market also stands to benefit from the onset of the festive season, which commenced with Ganesh Chaturthi. Historically, housing sales have witnessed an uptick during festive periods. Coupled with the current economic boom and increased disposable income among the populace, experts anticipate a substantial surge in housing sales during this festive season.

In conclusion, the Indian housing sector continues to display remarkable resilience, driven by strong demand and innovative incentives, even in the face of rising property prices and elevated home loan interest rates. The festive season further augments this optimism, hinting at a potentially robust period for the real estate market.

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