The existing home loan rates are at their lowest level in the last four decades and this benign regime is expected to continue for another six to twelve months providing homebuyers the best opportunity to buy homes, says Keki Mistry, Vice Chairman and CEO, HDFC while speaking at the NAREDCO-APREA virtual real estate conference.
As reported by The Economic Times, Mistry said that the growth in the economy and the real estate has been sharp. The factors like the RBI infusing much needed liquidity into the sector, various concessions given by the government and the developers like the stamp duty relaxations have extended the best buying opportunity for the homebuyers.
He cautioned that the RBI may face some pressure owing to the higher inflation that will reduce its ability to cut the rates further. However, also observed that the banks are now distinguishing between the strong and weak developers for lending, hence improving the quality of balance sheets, avoiding over-leveraging and staying well-capitalised will help the developers float well in the market.
Citing that the festive season around Diwali this year has witnessed a major turnaround for the residential real estate segment by registering a growth of 83% in the number of residential units and the growth in the sales value by 72% over the last year, Anuj Puri, Chairman of Anarock Property Consultants observed that the affordable housing segment will continue to grow.
In the commercial segment, Puri expects around 23 million sq ft of new office space leasing this year and the rent collection has been between 97 % and 99.5% during the April to October period that indicated a revival in the office segment.
According to K Raheja Corp's President Neel Raheja, the start of the pandemic saw a few months of zero sales but soon people realized the value of owning a home which saw a severe turnaround. He expects the volume to increase in the coming months with continued momentum.