With decreasing interest rates on home loans, builders are optimistic about a boom in the realty market
With decreasing interest rates on home loans, builders are optimistic about a boom in the realty market
With the State Bank of India (SBI) reducing the interest rate for home loans to eight per cent, builders across Pune are optimistic that the real estate market will see a rise in demand soon.
Welcoming this move, Lalit Kumar Jain, president of Promoters and Builders Assoc-iation of Pune, said, "Buying homes will now be easier, as buyers will have to pay lesser EMIs. This will certainly provide much needed respite to the real estate industry."
Sudhanshu Purohit, CEO of ABIL Group, said, "Lowering interest rates will increase liquidity in the market and encourage prospective buyers, thus, giving a boost to the real estate industry that is in slump due to economic slowdown."
He added that other banks too might follow suit.
Purohit also acknowledged that there was a possibility of the interest rates on home loans dipping further, but warned that the change would be marginal.
Rise and fall
With the soaring stock market and flourishing IT industry, the realty market in Pune had witnessed phenomenal rise. Riding on the boom, software professionals and other high net worth individuals had invested heavily in the real estate, making property prices shot up enormously.
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However, due to the economic slowdown, people who had made bookings backed out leaving builders in a lurch.
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