Hopes of lower home EMIs bring good times for realty

A slew of proposed measures by finance minister Nirmala Sitharaman hinting at lower EMIs for houses has lifted enquiries from home buyers for apartments and independent houses.

Confederation of Real Estate Developers of India (CREDAI) Indore chapter expects property registrations to remain at around Rs 80 crore in August and the trend is likely to remain firm for coming months.

The real estate body also demanded a cut in stamp duty to aid liquidate ready properties. CREDAI Indore chapter chairman Liladhar Maheshwari said, “Actual users are coming in the market and the trend looks firm. In August property registrations are likely to remain close to Rs 80 crore mainly led by the sale of flats and plots.”

In July, revenue from property registrations was reported at Rs 115 crore with 9,212 registries. Developers said the proposed measures by government to boost the sector are seen pushing the real estate market with homebuyers awaiting reduction in interest rate on housing finance.

They said as the government has proposed to pass on benefits of a rate cut to borrowers leading to a reduction in EMIs for home loans, demand for mid-range property has picked up.

Fresh deals are likely to pick up pace further from September with start of 10-day long Ganesh festival followed by Navratri as festivals are considered auspicious to buy properties.

CREDAI said demand from genuine and first-time buyers have picked up while a 20 percent reduction in property guidelines rate has given a major boost to consumer sentiment.

Developer Arun Mukati said, “Demand for flats and small size plots has picked up but high value residential units are not fetching enquiries.” CREDAI suggested lowering of stamp duty rates from current 12.5% in state to further push demand for property.

Maheshwari said, “Stamp duty rates are very high in state and it should be reduced. Stamp duty should be fixed at 7 percent on purchase of first Rs 125 lakh then gradually on higher purchases, the percentage should be increased. It will boost the sale of all property in the state.”

News Source: Economic Times, Url: https://bit.ly/2kpCm4q

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