The government’s concentrated efforts on infrastructure development promise to significantly enhance housing demand. The establishment of the India Infrastructure Fund and emphasis on Public-Private partnerships for infrastructure in the budget is also a game-changer for the real estate industry.
As many as 80% of people who aspire to own property prefer to take a home loan for it. As many as 52% home buyers prefer apartments, followed by studio apartments at 19%, and independent houses or villas at 17%. Notably, gated communities and plots of land are less popular, chosen by only 7% and 5% of respondents, respectively.
79 per cent prefer home loans to finance their property purchases. Key reasons include competitive interest rates, flexibility in loan tenure, and a long repayment period of up to 30 years, making repayments manageable. Additionally, home loans offer tax benefits and do not typically incur penalties for early repayment, adding to their popularity.
Investing in property can be a powerful way to achieve financial freedom, especially if you’re struggling with debt. By leveraging real estate, you can create income, build equity, and ultimately work towards eliminating your financial burdens.
Indian housing sector saw growth in sales and launches in FY23-24, but affordable housing segment declined post COVID. What is need is reviving incentives like credit-linked subsidy scheme and 100% Tax Holiday for developers to stimulate demand and supply in affordable housing sector.
The residential sector exhibits substantial growth potential, underscored by sustained demand over the past few years, complemented by consistently stable interest rates and robust GDP expansion. Notably, there is a pronounced demand for mid- and high-priced residential properties.
Every home loan borrower should be aware of the following income tax rebates on home loans. The EMI you pay is made up of two parts: principal repayment and interest paid. The major component of the EMI can be deducted under section 80C of the Income-tax Act of 1961 for self-occupied property.
The Reserve Bank of India’s decision on Thursday to keep the repo rate of 6.50 per cent unchanged came as a huge relief to the real estate industry as well as home buyers paying back home loans.
Even after a rise in property prices and home loan rates, buyers from across segments are investing in real estate. Home loan demand was robust in 2022 and seems to have increased in the months following the rate hikes.
Young Indians will continue to dominate the homebuying segment for the foreseeable future as they seem to be more financially prudent than previous generations.