Land prices have risen significantly, and this impact is clearly visible in-house prices. As a result, house rates in Hyderabad are touching new highs. Infact, just seven to eight years ago, good 2 and 3 BHK flats in Hyderabad could be found for between Rs 40 to Rs 60 lakhs. However, the situation has changed completely since then. After the pandemic, the demand for own houses in Hyderabad has increased. If houses are built for the middle-class section in our country, there will always be demand in the market. This is why developers are now prioritising the affordable housing segment.
While it’s true that large projects have increased in Hyderabad, this trend hasn’t been seen everywhere. Apart from the West Zone, in other areas around the city, especially near the ORR, houses are still available at affordable prices. With some patience, good projects offering 2BHK and 3BHK flats in the price range of Rs 70 lakhs to Rs 1 crore are still available.
The steep rise in interest rates after the pandemic has dampened the hopes of the middle-class section for owning homes. The RBI repo rate, which was 4% before COVID, increased to 6.5% later. As a result, loan availability has decreased, and many potential homebuyers have stepped back due to the fear of high interest rates. Recently, the RBI reduced the repo rate by 25 basis points, and there are rumours of further rate cuts. Additionally, the central government’s announcement to provide loans for housing construction has increased expectations of a rise in demand for affordable homes.
If you’re considering purchasing a double-bedroom house worth Rs 70 lakhs, here’s how the EMI calculations would work based on different banks. Assuming you make a down payment of Rs 15 lakhs and opt for a home loan of Rs 55 lakhs, let’s see how the EMI would look across various banks. For SBI (State Bank of India), with an interest rate ranging from 8.5% to 9.65% per annum and a loan tenure of 10 years, the EMI would be Rs 68,192 per month at an 8.5% interest rate. At HDFC, the interest rate would be 8.75%, and the monthly EMI for a 10-year tenure would come to Rs 68,930. For LIC Housing Loans, with an 8.5% interest rate, the EMI would be significantly lower at Rs 54,161 per month. Lastly, with Axis Bank, at an 8% interest rate, the EMI for the same 10-year period would be Rs 68,930 per month. While the EMI is influenced by the interest rate, tenure, and bank policies, it’s clear that the monthly payments can vary slightly across different financial institutions.
If you opt for a 20-year tenure for your home loan, the EMI calculations would differ slightly across banks. For SBI with an 8.5% interest rate, the monthly EMI would be Rs 47,730. At HDFC, with an interest rate of 8.75%, the EMI would be Rs 48,604. In LIC Housing Loans, the EMI would be Rs 47,730 with an 8.5% interest rate. Finally, Axis Bank offers an 8% interest rate, with the EMI amounting to Rs 46,004.
If you decide to extend the loan tenure to 25 years, the EMI changes accordingly. At SBI, with an 8.5% interest rate, the EMI would be Rs 44,287. HDFC charges an 8.75% interest rate, resulting in an EMI of Rs 45,218. With LIC Housing Loans, the EMI would remain the same as SBI, Rs 44,287, at the same 8.5% interest rate. At Axis Bank, with an 8% interest rate, the EMI would be Rs 42,450. All major banks typically offer a maximum loan tenure of up to 30 years.
