Year 2017 to see growth in Affordable Housing Sector
On New Year’s Eve, Prime Minister Narendra Modi had announced Banks need to give preference to lower middle class and poor section of the society when it comes to lending. He also hinted to come up with interest subvention scheme; this scheme is better version of a scheme that was announced in the year 2015.
Most of the realty players are optimistic about the refined version of this scheme. After the prime minister’s announcement many leading banks have slashed lending rates by almost 90 basis points. You will be glad to know that it has already triggered positive reaction in the real estate market.
The PM also added on the New Year’s Eve that the Central Government would offer interest subvention of 4 per cent and 3 per cent on home loans up to Rs 9 lakh and Rs 12 lakh respectively.
Further, a 3 per cent subvention will be given for loans up to Rs 2 lakh for the new housing or extension of housing taken up in 2017 in rural areas. The existing Credit Linked Subsidy Scheme (CLSS) has been widened by the new announcements made by Modi Government. Please note that Credit Linked Subsidy Scheme (CLSS) is the part of Pradhan Mantri Awas Yojana (PMAY).
Mahagun Group, Director, Dhiraj Jain said that affordable housing segment is the biggest gainer owing to latest government’s announcement of rebate on lending rates and banks announcing reduction in lending rates. Affordable housing potential buyers will be borrowing now at 4.6 per cent for loans up to Rs 9 lakh. And, at 5.60 per cent for loans up to Rs 12 lakh. Demand for housing amongst the buyers will increase.
Saya Group, MD, Vikas Bhasin commented that as the lending rates are reduced by banks, market will see fresh demand and now real estate developers in the country will be focusing on affordable housing segment in low interest rate environment.
These comments by experts and the market trends shows that Year 2017 is expected to see growth in Affordable Housing Sector.
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