The country’s central bank, the Reserve Bank of India, has not made any changes to the repo rate for the ninth consecutive time. Repo rates are still at 6.5 percent. Due to the stability of the repo rate, which directly affects the interest on your home loan, there will definitely be no changes to the existing home loan, while there may be better opportunities for new home loan applicants.
According to the market portfolio, a stable repo rate will bring stability in interest, taking advantage of which the bank will be able to start its new business. Home loan offers may be available at lower EMIs, so the demand for housing is expected to increase during the upcoming festivals. This means that overall, there will once again be a better environment for those buying a new home. In such a situation, if you are planning to buy a new home, this time is the most favorable for you. Let us also tell you what market experts say?
Market maturity
Developers have learnt a lot from the triple impact of demonetisation, GST and Corona, the impact of which is now manifesting in the form of a mature real estate market. The market is now functioning only with developers who work in a limited, good and timely manner. Apart from being shamed, home buyers and investors have always expressed their trust in these developers, so they have learnt the mantra of remaining shockproof, tolerating every change and shock. In such a situation, going for the projects of these developers would be the best option.
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Ready to move in units
In the year 2024, a home buyer is fully aware of the ups and downs of the real estate market and hence is blindly investing in a ready-to-move-in property today. The good thing is that there is no shortage of ready-to-move-in units in supply. Projects that emerged from the ups and downs of the market are now filled with ready-to-move-in units. Avnish Sood, Director, Eros Group, says that stable interest rates boost confidence, making buying a home more attractive and affordable.
Despite rising housing costs, stable mortgage loans provide some relief to potential buyers and post-Covid buyers have made purchasing larger homes a priority. Low or stable interest rates increase the purchasing power of buyers, making it easier to acquire larger homes and customers are showing interest in projects under construction, thus promoting domestic and foreign investment.
rapidly growing infrastructure
For home buyers and investors, investment has always been linked to sound infrastructure. The definition of infrastructure has now expanded beyond roads, metro, airport and railway to include construction hubs and parks around real estate hubs. Where world-class industries can be established attracting investments from India and abroad and employment opportunities can be created close to the housing society. In this way, the settled population can be provided with facilities to live, work and commute.
In a way, it is like creating a 360-degree ecosystem so that people cannot stop themselves from coming to new places. According to Dinesh Gupta, Secretary, CREDAI Western UP, the stability of interest rates not only encourages home buyers but also developers. The supply and demand chain is showing good results in the market. In such a situation, stability of interest rates further strengthens the favourable environment for investment and sustainable development of the economy.
Home buyers have a good opportunity
Suresh Garg, CMD, Nirala World, said that stability in the repo rate is a good opportunity for home buyers to purchase their home as there is no additional burden of bank loan interest or increasing installments on their pocket. A stable repo rate also keeps the loan interest rates stable, allowing both developers and home buyers to benefit from increased confidence and predictability in the market. This is the right time to buy a home because if there is a decline in inflation in the coming time, the repo rate will come down further, due to which property prices are expected to rise.
Benefit for the real estate sector
According to Himanshu Garg, Director, RG Group, we believe that stable interest rates provide essential benefits to the real estate sector. Since interest rates remain stable, home buyers can plan their purchases without worrying about future rate increases. This also impacts construction costs, the stability of which acts as a plus for the development of the sector. Any increase in interest rates will have a negative impact on the recent surge in real estate transactions.
Demand and supply of large homes.
Developers are now laying emphasis on building 3 and 4 BHK flats instead of small or 1 or 2 BHK flats as before. The reason for this is more related to the increasing demand of home buyers than cost and time. Flat gives you the opportunity to live a life of limited size. In such a situation, a flat with small dimensions can become a challenge in the future.
This is why people are showing interest in buying large sized flats right from the start. This also includes those home buyers who were previously living in small flats and are now moving to bigger flats due to increasing family size and needs. For this reason, developers are also constructing 3 and 4 BHK flats in new projects or towers to meet the market demand. Stable interest rates have given new confidence to consumers, which has increased the demand for large houses.
