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In a trend that indicates the growing nature of the real estate industry in India, there has been a 26% rise in home loans between January and June this year. Apparently, homeowners are borrowing money at low rates of interest in the contemporary regime to purchase new properties. The first half of the present year has also marked a 42% surge on year in the demand for BT (Balance Transfers) for home loans. This clearly signals the growing interest of property owners in the real estate market.
During the same period, statistics reveal that LAP (Loan Against Property) underwent a 20% rise. It can be stated that the growing demand took place due to the decision of the RBI to stick to the 4% repo rate. As a result, several banks have been able to shell out home loans at 7% interest or even lower. This has been a major factor leading to the demand for homes.
In India, all the key markets have witnessed demand in the residential property market segment. This corresponds with the demand for home loans in the country. The government has also taken several initiatives to maintain a constant repo rate. The stamp duty has been reduced in many of these cities. All these factors have fostered a favorable environment for the real estate industry to grow. The consumer sentiment has been boosted in the right manner. Around 50% of the homeowners have opted for tenures apart from 15 years.
Amidst the pandemic, the homeowners are looking for properties where they can operate at their homes. Some of the major cities where the demand for home loans has increased are Mumbai, Ahmedabad, Delhi, Hyderabad, and Pune. Even some of the tier-II cities such as Patna, Agra, Lucknow, Indore, and Jaipur have undergone similar trends. Cities like New Delhi, Pune, Hyderabad, and Mumbai are at the top when it comes to Balance Transfers. In this regard, the tier-II cities include Ghaziabad, Indore, Visakhapatnam, Mohali, and Noida.
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