DEMAND FOR REAL ESTATE WILL GET A BOOST AGAIN AS CONSTRUCTION WILL PICK UP
As interest rates of home loans are all set to come down with major PSU banks lowering there prime lending rates, demand for real estate will get a boost again. And rising demand will not lead to any price increase, according to developers and consultants. Developers feel that the construction activities and demand will get a real push once the main home loan disbursing institutions like ICICI Bank and HDFC Ltd, which together control more than 50% of the market, will slash their rates. Rise in demand will also depend on willingness to give loans by the banks at the ground level. Unitech MD Sanjay Chandra said that cut in interest rate will increase activities as it will prompt end-users to buy houses as EMIs will decline for same amount and tenure of loans. As many builders have started developing affordable houses in the range of Rs 20 lakh to Rs 50 lakh, lower interest rates will push purchases.
Courtesy: - ET dtd: - 14th Nov. 2008
Courtesy: - ET dtd: - 14th Nov. 2008
