Affording a home has become easier than it ever was. In the past two years, property prices across India have remained the same. With the government focusing on the housing sector through the Pradhan Mantri Awas Yojana (PMAY), the housing sector is witnessing a boom and would further witness growth in the near future. Moreover, the reduction in stamp duty by the Maharashtra Government last year also helped to pick up the demand for housing. Other factors like work from home, and having entertainment space at home, made people realise the need for additional space at their homes. Overall, it was a good year for the housing sector and factors such as favourable demographics, improved affordability, lowest interest rates on home loans are pushing the demand for home loans in India.
Today, every developer in the country is focusing on the construction of new projects, early completion of projects, giving tough competition to the large developers with competitive pricing. Many joint ventures are taking place in this segment.
In such a scenario, the RBI’s accommodative price policy has kept home buyers active in the market. Due to low-interest rates, lenders are now pushing developers to complete projects at any cost and get stock in the market. The RBI price policy has ensured that Indians kept buying homes, and developers kept reducing standing stock and inventory and get the cash cycle moving. The volume of new launches has increased and with the current festive season around the corner, developers are banking on this market more aggressively.
