Will the festive season hold Promise to realty sector?

RegNews, Hyderabad: The real estate sector, which received a severe jolt due to the pandemic, is not slowly limping back to normalcy. It is all set to pick up speed. People, going by the last year’s developments, have realized the importance of owning a house of their own.  Accordingly, many people have been putting their best foot forward to realize the dream of owning a house.

In this backdrop, the builders and bankers have set their sights on attracting buyers offering unprecedented low rate of interest on house loans. They estimate that the buyers will come forward to buy property in three months. The SBI, Housing Development Finance Corporation, Kotak Mahindra Banks have reduced the interest rates – ranging between 6.5 per cent and 6.7 per cent – by 60 basis points, the lowest for a decade.

The Covid-19 has impacted banks severely. Therefore, they are of the view to set their operations back on rail by wooing house loan customers. The RBI decision to pump billion dollars into economy helped banks slash interest rates. The builders are also attempting to make the most of the situation and announcing various incentives and gifts to the buyers.  They are offering various repayment plans and not hesitating to defer advance payments to the advantage of buyers.

Jones Lang LaSalle, renowned economist, and Samantak Das, Chief Economist and Head of Research, JLL India, said stable house loan market, festival officers, reduction of interest rates on house loans will improve sales in housing sector. In the second half of the current year, the offers help increase sales by 30-35 per cent.

The JLL, quoting survey reports, said that the number of those who want to buy houses is increasing. It conducted a sample survey interviewing 2500 in six important cities of the country. Eighty percent of the surveyed responded that they have plans to buy homes in three months. In the second half of fiscal year 2022, the developers will receive record-level bookings of their new projects, according to ICICI Securities equity research expert Adidev Chattopadhyay.