Increase in homebuyers
Homebuyers seem to be coming back in strong numbers, going by the increase in the home loan portfolio of public sector banks. The first quarter numbers reveal that there has been a significant increase in the number of home loans extended compared to the year-ago period.
State Bank of India (SBI) has recorded 15.6 percent growth, with other banks reflecting a similar trend. The growth is significant in loans up to Rs 30 lakh. Data available with SBI show that this category accounted for 75 percent of the total home loans.
What is driving this trend? A senior official of Union Bank of India said that there has been muted growth in the housing segment in recent years but now people are coming forward to buy affordable houses. Price correction in the real estate sector, increasing rentals and tax sops could be driving this spurt in interest.
In fact people these days post getting a job look forward to get a house for them at an affordable price. This is mainly due to the increase in rental costs and people can afford in taking a loan at the similar price.
Source: Hindu Business Line
