Bangalore real estate market has always been a front runner in the Indian realty space.According to official statistics released by Confederation of Real Estate Developers Association of India (CREDAI), Bangalore witnessed sales of over 45,000 units in 2014. With home loan interest rates coming down due to improving economic situation and lowering inflation, realty experts believe that number of units can very well register a 25 to 30% increase in the figures compared to the same period last year.
Even growth in Bangalore realty space: Unlike other cities where real estate growth has been concentrated in certain pockets, realty growth in Bangalore is far more evenly spread out. Teconcentration of the IT sector in southern and Eastern Bangalore and the presence of the
international airport in North Bangalore has meant that all areas of the city has witnessed capital appreciation in real estate investments.
Bangalore due to its string consumer market and demand for real estate housing is attracting builders and developers from all over India. Certain areas including Whitefield (West), JP Nagar, Kanakpura Road, Hosur Road and Sarjapur Road are the most preferred localities for real estate housing projects including luxury housing projects. Bangalore has witnessed launch of 13,400 units in the first quarter of 2015 which is up from the corresponding figure of 11,170 units registered in 1Q in 2014. With home loans getting cheaper and more pocket friendly the number will increment in the coming quarter.
Easy availability of home loans: The home loan market is witnessing an increase in numbers with easy availability of loans along with lowering of interest rates. After the RBI repo rates coming down significantly in recent times, most banks including public sector bans and private banks have reduced their base rates offering home loans at a cheaper interest.
State Bank of India, the country’s biggest public sector bank for example has reduced its home loan interest rates for women borrowers and currently offering loans at 9.70%. As a novel feature to makes sure existing home loan borrowers can also get the advantages of lowering interest rates, SBI has allowed existing home loan borrowers to switch over to current rate of interest by paying 0.57% of the outstanding amount. As a general trend home loan interest rates have now stabilized around the 9.9% mark for majority of banks and NBFCs which is a significant drop from the high interest rates of 2014.
Increase in pre approved loan projects: With increase in home loan buyers, real estate developers are going all out to attract the maximum number of clients for their projects.
Developers are increasingly collaborating with public sector and private banks offering preapproved home loans for real estate projects. Pre approved projects are the first preference for many buyers as they are able to save sufficient time and effort in getting a home loan approval.
Since banks due all the due diligence before applying for a pre approved home loan, buyers can also be sure of the reputation of the builder and background check.