Affordable housing dynamics pushing sales
According to developers, fence sitters have decided to take the plunge because they see no immediate correction in prices.
While the real estate sector is witnessing a significant uptake, experts believe that a number of factors have contributed to it — affordable housing being the most important among them.
Presently, a house priced below Rs 50 lakh is considered affordable. However, the definition of affordable housing is subject to change with factors like carpet area and eligibility criteria set by the government.
According to developers, fence sitters have decided to take the plunge because they see no immediate correction in prices. “The expectations around the prices coming down post-demonetisation and some extra budgetary support have not really come true and people have realized that. So they are taking the leap to invest in the sector,” said Rohit Gera, managing director, Gera Developments.
Also, low interest rates on home loans (between 8-9% for most banks) is garnering a positive response.
Gera said people are trying to get the benefit of credit-linked subsidy scheme, while it lasts. The subsidy under the scheme can work out up to Rs2.67 lakh. Also, builders are giving across-the-table discounts in order to woo customers.