On one end leading banks have cut interest rates on home loans and at the other, they are turning the screws on non-performing accounts. Developers stretched for cash have little option but to liquidate inventory to repay loans. What’s more, the government’s efforts to nudge people towards black money disclosure will likely further reduce the opacity in real estate transactions, especially in the secondary market.
Interest rates on home loans are near their lowest in the past two years. And with a change expected at the helm of the central bank, most likely resulting in the appointment of a governor synced to the thinking in the government, interest rates are unlikely to firm up in the near future.
Add to this a regulator in the works; fund infusion into the development of smart cities; electoral concerns directing attention to civic amenities, and the picture looks rosier.
An important indication of future potential has been the increase in demand for commercial space by the people-intensive services sector across several cities in the recent past. It points to increased employment opportunities and a likely fillip to rentals and investments in homes.
This development can help lead to absorption of some supply in the market in the coming months and eventually lead to a revival in the sector over the next year or two. Given how good it is for home buyers now, it might not be wise to put off that home buying decision for too long. So get with it. Get a home!
Former Editor, Outlook Business and Executive Editor, NDTV Profit, the writer is a personal finance expert. Mail him at propertyplus@ thehindu.co.in
