India Turns into a Hotbed for NRI Investment as Rupee Depreciates

The sharp decline of rupee against dollar observed in the last few weeks has impacted Indians and NRIs equally. However, as Indians cringe at their accounts, the NRIs have been gladly looking out for investment opportunities in the country owing to more rupees in their hand.

The recent fall of the Indian currency went as low as 74.46 against the US dollar. But this has come with a silver lining as far as the Indian real estate sector is concerned. With so much more to spare, the NRI investment enquires and even transactions have spiked up remarkably.

In the last couple of years, India has seen a steady doubling of the NRI investments anyway. The key factors others than the dwindling rupee have been increased transparency through RERA (Real Estate Regulation and Development Act, 2016), recent changes like GST and to some degree even the insolvency code. This has instilled a new level of trust among the buyers and the property dealers. Also, the slow domestic sales in the recent past had realtors turn their eyes exclusively to the NRI customers in the hope to revive markets. Properties and projects were built with loaded amenities and were slanted towards luxury homes, which have always been the choice of NRI investors.

Often tied to India through property and emotional ties, the Indian diaspora abroad has always found ways to stay linked to the country even when they’ve completely shifted overseas. However, having little means to stay abreast with the latest changes in the native property market and the subsequent pitfalls, there is a huge need for a platform that will fill the gaps between these potential investors and property dealers.

Keeping in mind the opportunity presented by the NRI community & the growth trajectory within the Real Estate Industry, Network 18 launched The Global Conclave for Indian Realty (GCIR) as a global platform engaging with Indian’s settled abroad. Being a one of a kind programme, GCIR regularly travels across various countries like UK, US, Middle east and Asia. The main objective being educating and engaging investors, it brings together India’s marquee property developers and property experts with NRIs across key global cities.

In their second chapter, GCIR in partnership with IBPC is hosting their conclave in Dubai on Monday 22nd October. Lead by India’s foremost Real Estate and Urban Development expert Manisha Natarajan, the aim is to help NRIs tap into the Indian realty market with a series of panel discussions on topics:
“The Right bets in India Realty” and “Navigating India’s Real Estate Market – Do’s and Don’ts”

Considering the opportune time for NRIs to invest in India,be sure to tune into News18.com for all the details and insider insights from the conclave and make the most of this time to invest right.

Source: News 18

NCR office leasing set to pick up on strong demand

Hiring by the IT and business process management sector, global multinationals setting up global capability centres (GCCs) along with professional services and e-commerce firms will
push the demand for office space leasing in NCR, said top property consultants. Nearly, a third of the quarter’s leasing (January-March) consisted of large transactions(above
100,000 sq ft) across micro-markets in Gurugram and Noida with some occupiers also locking hard options for future expansion plans, as per consultants.

“While a third of the deals were one lakh sq. ft. and above, many multinationals have also taken space in the bracket of 50,000 sq ft to 100,000 sq. ft. There is a strong demand for Grade
A buildings as employee wellness remained a high priority for corporates, who drove leasing momentum in wellmanaged and quality buildings,” said Vibhor Jain, managing director –
North India at Cushman & Wakefield.

Net absorption for Q1 was recorded at 1.3 msf, a slight reduction of 7% on a quarter on quarter comparison.Strong demand with large space take-up by even new-age firms is likely to
keep Delhi NCR’s office space on a strong footing in the quarters ahead. “IT and Business Process Management (ITBPM) sector is well placed to hire five million employees across the
country in the next 5 years. Cumulatively, it is estimated that they will end up taking 80-120 million sq ft in Grade A office buildings including co-working spaces across
the country,” said Shweta Sawhney, MD, Delhi-NCR, Savills India.

Fresh leasing, including expansion and consolidation by occupiers, constituted 91% share of the quarter’s leasing. Pre-commitments formed 7% of quarterly leasing. “Cities which will
lead this absorption are Delhi NCR, Bangalore and Hyderabad. Across the consulting sector as well, there is additional employment likely of 80k-100k hires by FY23. All these factors
point towards exciting times ahead for commercial real estate and demand will remain robust across the key markets despite hybrid working scenarios,” said Shweta Sawhney.

Source: The Economic Times

Zirakpur underpass work nearing halfway stage

The construction work on an underpass on the Chandigarh-Zirakpur highway is reaching the halfway stage with both slabs ready. Punjab PWD Executive Engineer Yuvraj Singh Bindra
said, “Almost 45 per cent of the construction work on the underpass is complete and the department is set to complete the project before the August deadline.” PWD officials said the
work was slow-paced due to unavailability of earth for filling the approach due to mining restrictions, but now things were on track.

The underpass is being built on the Zirakpur side in an area of 450 m at a cost of around Rs. 10 crore to facilitate the movement of heavy vehicles coming from the godown area side. It
will remove the permanent black spot on the highway.

Traffic lights on the spot would not be required and vehicles coming from the Zirakpur and Chandigarh side would have a halt-free movement, said an official at the site. Road users have
been facing inconvenience for almost five months with traffic crawling due to congestion, but with improved traffic management the travel time has come down considerably on both sides.
The work is being done by a Jalandhar-based company, Associated Engineers, under the supervision of the National Highway Division, PWD, Punjab.

Source: The Tribune

Chandigarh to install solar plants on houses free of cost

The city is going to be the first in the country where private players will be roped in for installing rooftop solar plants on private residential buildings free of cost.

After witnessing a lukewarm response from city residents, who were not willing to shell out for a rooftop solar plant, the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST), the nodal agency for the installation of solar photovoltaic (SPV) power plants on rooftops, proposed the Renewable Energy Service Company (RESCO) with a build-operate-transfer (BOT) model.

Later, CREST filed a petition before the Joint Electricity Regulatory Commission (JERC) for approval of the business model framework for installation of grid-connected rooftop power projects for domestic consumers by a third party under the RESCO BOT business model as per provisions of the JERC.

During a recent hearing in the JERC, the petitioner (CREST) submitted that the issues raised by the UT Electricity Department (respondent) have been addressed and further, the department has agreed to the new business model submitted to the commission for its approval.

The Electricity Department submitted that the business model had been agreed to by them. The department has also agreed to the terms and conditions under the Quadripartite Agreement (QPA) except a provision relating to banking of power in the said QPA. The petitioner and the respondent have also submitted that after resolving the issue of banking of power, they would submit the initialised QPA to the commission for its consideration within a week.

Debendra Dalai, Chief Executive Officer, CREST, said the UT was expected to soon get approval for the implementation of the business model in the city from the JERC. He said the city was all set to have the RESCO model to be implemented on private residential houses “It is going to be a unique model to give a big boost to solar power generation and Chandigarh will be the first city in the country to implement it,” he said.

Under the model, a private company will install solar panels without taking any money from house owners. The owners will have to give only space on the rooftop to the firm and they will get electricity at nearly Rs. 1.50 per unit less than the existing rates for the next nearly 15 years. After the completion of the BOT period, the company will hand over the solar plant to the owner. The firm will recover the cost by selling the energy produced from the plant. All maintenance of the plant will be carried out by the firm during the BOT period, he said, adding that excess power left after utilisation by the house owner will be transferred to the grid.

The Ministry of New and Renewable Energy had enhanced the city’s solar power generation target from 69 MW to be achieved by 2022 to 75 MW to be met by August 15, 2023. Till date, the UT has achieved a generation of around 47 MW.

Owners to get power for Rs. 1.50 per unit less

A private company will install solar panels without taking any money from house owners. The owners will have to give only space on the rooftop to the firm and will get ower at nearly Rs. 1.50 per unit less than the existing rates for the next nearly 15 years.

After the completion of the BOT period, the company will hand over the solar plant to the owner. The firm will recover the cost by selling the energy produced from the plant. All maintenance of the plant will be carried out by the firm during the BOT period and excess power left after utilisation by the house owner will be transferred to the grid.

Source: Tribune

Office space leasing grows 97% YoY in Q1 2022: Report

Office space leasing in India grows 97% Y-o-Y to about 11.4 million sq. ft. in Q1 2022 with Bangalore, Chennai and Delhi-NCR accounting for two-thirds of transaction activity,
according to a report by CBRE South Asia.

The report said that technology corporates drove leasing with a share of about 34%, followed by BFSI firms (17%), flexible space operators (13%), engineering & manufacturing (12%)
and research, consulting & analytics (11%) firms.

The report further highlighted that office space take-up was driven by small- (less than 10,000 sq. ft) to medium-sized (10,000-50,000 sq. ft.) transactions with a share of around 84%.
Pune and Chennai, followed by Delhi-NCR and Bangalore, dominated large-sized deal closures.

Supply witnessed in Q1 2022 was around 9.4 million sq. ft. – a slight dip of around 11% Y-o-Y and 41% Q-o-Q. Bangalore, Hyderabad and Chennai dominated development
completions, accounting for a cumulative share of about 70%. Supply was driven by non-SEZ developments with a share of around 83%.

“With the government’s evolving COVID-19 protocols and the recovery in office leasing in 2021, we expect the positive momentum to further strengthen in 2022. We continue to
witness a pickup in long-term decision-making by occupiers, aided by ‘return-to-work’ strategies, thereby accelerating project completions,” said Anshuman Magazine, Chairman &
CEO – India, South-East Asia, Middle East & Africa, CBRE.

Renewals, renegotiations, and the addition of flexibility options are likely to be the focus of occupiers in the short term. CBRE expects to see clearer evidence emerging in any
corporates’ intended to shift towards hybrid working policies, with several occupiers planning to implement policies allowing office-based working with the option of working remotely.
With an increased focus on wellness, user experience and sustainability, occupiers are expected to demand more sophisticated and tech-enhanced real estate offerings.

Source: The Economic Times

Sustainable living along with personal workspace: The emerging new asset class

The residential real estate segment has witnessed a tectonic shift in recent times due to the socio-economic impact of the COVID-19 pandemic. Homebuyers are now recalibrating
their preferences in line with the new normal. Real estate has been traditionally regarded as a safe haven and sound investment asset in the Indian ethos. COVID-19 has further
accentuated the priority of buying homes against living with insecurities in rented accommodation.

Residential properties are increasingly being perceived as a stable asset class due to assured and steady returns among HNIs, NRIs, and millennials mulling to invest in their
homeland. Also, the stock market and gold have seen their run giving investors a reason to plough their money into residential real estate.

The extended work from home has heralded a shift in consumers’ preferences towards residential offerings with a distinct workspace. This trend has prompted the redesigning of
conventional residences with 2-BHK and 3-BHK configuration while considering workstation as an additional component in their product offering. These residences perfectly suit the
‘work from home’ (WFH) lifestyle for both Indians working with global firms and the expat communities.

COVID-19 has also prompted developers to rethink their offerings to align with the tastes of discerning Indian homebuyers. Residences located in self-sustainable oasis and endowed
with state-of-the-art amenities, such as a gym, spa, a private space for weekend meetups, a kids’ play area, among others, have emerged as sought-after realty offerings. Location,
ticket size, pleasing aesthetics and thoughtful design and cutting-edge technology are among the key factors influencing homebuyers’ decisions.

Homebuyers now consider their dream home as an address and a space of their ‘belonging’ to meet their psychological, emotional, and social needs. With some Indian and global
organisations mulling a permanent ‘work from home,’ geography is no longer a constraint for homebuyers. It has pivoted the focus towards homes located on the outskirts of cities that
have witnessed rapid infrastructural developments. Holiday homes or second homes to enjoy ‘staycation’ and ‘workcation’ are also gaining traction to escape the monotony of work
from home. The health, hygiene and wellness concerns have also reaffirmed the significance of residences set amidst lush greenery and endowed with eco-friendly amenities such as
green building certification, provision for harnessing solar energy and rainwater harvesting, etc.

With customer-centricity gaining currency, real estate developers are customising their product offerings as per homebuyers’ requirements. Customisation of space has been extended
to such an extent that developers are offering complete open floors with the possibility of designing them as per homebuyers’ requirements from a range of standout design options.
Residential real estate projects that are already in development or the planning phase are considering the ‘space’ element with a new approach, keeping in mind renewed choice of
homebuyers.

The health and wellness concerns also imply that robust facility management will be an essential factor for homebuyers while choosing their home. With the customers prioritising
values such as ethics, transparency and accountability, bridging trust deficit and maximising the customer experience will be the key priority for developers. It will invariably lead to the
consolidation of the industry in favour of organised players with sound credentials and excellent track record.

Homes with a provision of a workspace have emerged as the new asset class and will continue being one of the most sought-after offerings in the post-COVID era to cater to the
compact families of the Indian millennials and exemplify convenience and value-for-money propositions. The COVID-19 pandemic can be regarded as an inflexion point that has
unlocked opportunities for Indian real estate to reform itself for a bright future. Bolstered by enabling government policies, initiatives by developers and robust infrastructure, we foresee a quick rebounding of Indian real estate in line with the new normal and contribute towards achieving the dream of a 5 trillion dollar economy by 2024.

Source: Financial Express

Current, future sentiment index in real estate at all-time high: Report

The sentiment in the real estate industry has turned optimistic and touched an all-time high during July-September and the outlook for the next six months also remains positive with
recovery in the Indian economy and rapid progress in vaccination, according to a joint report by Knight Frank, FICCI and Naredco.

The sentiments in the real estate market had turned pessimistic during the April-June quarter because of the outbreak of the second wave of the COVID-19 pandemic.

On Tuesday, property consultant Knight Frank and industry bodies FICCI and Naredco released their ”Real Estate Sentiment Index Q3 2021” based on the survey of developers,
banks, financial institutions and private equity players operating in the sector.

As per the report, both the current and future sentiments of the real estate sector have improved across all parameters in Q3 2021, on account of the economic recovery in the making
and waning of the second wave of the pandemic.

In Q3 2021, the current sentiment index score rose to 63 – the best ever, after the dismal score of 35 recorded in Q2 2021, Knight Frank India said.

The Future Sentiment Index score rose from 56 in Q2 2021 to 72 in Q3 2021, which is also the highest ever in the history of the Index.

A score of above 50 indicates ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’.

Knight Frank Chairman and Managing Director Shishir Baijal said: “The sentiment index is a perfect reflection of the market sentiments, especially as we are amid the festive season.”
In Q2, 2021, he said sentiments were at the lowest, which have turned around dramatically in a matter of mere 90 days to be one of the highest in Q3 2021.

“This is heartening to see, as it is reflective of the returning market confidence backed by rising demand,” Baijal said.

He noted that there is a strong sense of optimism due to improvements in socio-economic environment.

With a robust vaccination programme and the decline in the new COVID-19 cases, the consultant said there has been a significant revival in the commercial and residential real estate
market.

“Regional markets in the East, West and North are seeing positive response from IT and ITeS companies as well as technology start-ups that have turned unicorns,” Baijal said.

He attributed the rise in demand for office space to aggressive expansion in operations of e-commerce and start-up.

“High vaccine rate paired with concomitant sales from the festivities has kept the outlook for the residential sector positive,” he added.

Raj Menda, Joint Chairman, FICCI Real Estate Committee and Chairman and Corporate Chairman, RMZ Corp said that “… With an aggressive vaccination drive across India, the real
estate sector has started showing signs of a sustainable recovery.” Rajan Bandelkar President, NAREDCO India and Raunak Group said the positive outlook in the overall economy
and the subsequent reduction in cases of covid, is bringing cheer to the market this festive season.

Source: Business Standard

Realty sector high on revival route, housing sales rise 57% in Tier-I cities

While Navi Mumbai ranks high on several quality-of-life parameters, today it is a pale shadow of what it was intended to be. (Image via Wikimedia Commons 4.0)
Housing sales across tier I cities increased 57 percent over the last year on because of increased vaccination, low interest rates for home loans and flexible payment plans, a research
by Liases Foras has said.

Tier I cities had recorded 66,548 units of sales in the September quarter, which is a 17 percent growth compared to the June quarter. Tier I cities witnessed a marginal increase in
sales in the first half of 2021-22 from the second half of 2020-21 but soared over 80 percent over the corresponding period last year, the research said.
Sales recorded maximum recovery in Bengaluru by 99 percent, followed by Pune at 69 percent, Hyderabad at 62 percent, Ahmedabad at 58 percent, Chennai at 57 percent, MMR at
56 percent and NCR at 35 percent on a year-on-year basis.

In MMR, sales increased maximum in the Western Suburb (117 percent) and Thane (114 percent) followed by Central Suburb (95 percent), Western Suburb (Beyond Dahisar at 60
percent), Panvel (42 percent), Island City (41 percent), Central Suburb Extended (22 percent) and New Mumbai (13 percent) over the last year.

In NCR, sales witnessed a 35 percent Increase in NCR. All suburbs showed significant amount of growth in sales when compared on YoY basis. Unsold stock shrunk in Bhiwadi by (14
percent), Ghaziabad and Greater Noida by 8 percent. It increased 15 percent in Faridabad and 6 percent in Gurugram.

Unsold stock declines marginally

Consolidated unsold stock in Tier-I cities declined marginally in the second quarter to 896,404 units. Inventory in Tier-I cities stood at 40 months in September, dropping from 48
months in June.

Unsold stock in Tier-I cities decreased 4 percent in September, compared to the same period last year. Bengaluru witnessed the maximum decline in unsold stock (18 percent),
followed by Kolkata (9 percent), Pune (8 percent), NCR (4 percent), Ahmedabad (4 percent) and MMR (3 percent). Unsold stock increased in Hyderabad by 34 percent and in Chennai
by 1 percent, the research said.

Prices remained stable
Prices remained stable in Tier-I cities on QoQ basis and increased 1 percent on a YoY basis. Prices remained unchanged in Bengaluru, MMR, NCR and Pune. Prices in Chennai
increased 3 percent and increased by 1 percent in Ahmedabad and Hyderabad, while it decreased by a percentage in Kolkata.On a year-on-year basis, the weighted average price
across Tier I cities increased by 1 percent compared to a year ago. Prices increased by 4 percent in Hyderabad, 3 percent in Pune, 2 percent in Ahmedabad, Chennai and NCR.
Prices dipped in Kolkata (2 percent), and Bengaluru (1 percent) but remained stagnant in MMR, the research said.

Source: Money Control

Office space leasing increased by 89% QoQ in Q3 2021: Colliers

The top six cities of India noted about, 10.3 million sq ft of office gross absorption in Q3 2021, the highest volume recorded since Q1 2020. After a devastating pandemic second wave
in the second quarter, the overall absorption numbers rose by 89% QoQ as occupiers planned for a gradual reentry and closed deals that were onhold, leveraging tenant favourable
market dynamics, the report mentioned.

IT sector driven cities Hyderabad, Bengaluru and Pune accounted for 62% of gross absorption in Q3 2021. With increased number of fully vaccinated employees returning to their
workplaces coupled with fewer restrictions on mobility, the office market is showing strong signs of revival.

“The quarter has brought in much-needed cheer for the market. Large deals made a comeback, led by demand from flexible workspace operators. Decisionmaking by occupiers has
become quicker than in 2020. We can expect the optimism to strengthen over the upcoming quarters, provided there is no third wave. Occupiers who were exploring renewal options
have begun looking for fresh space,” said Ramesh Nair, CEO (India) and MD(Market DevelopmentAsia) Colliers.

After an average performance in Q2 2021, Hyderabad emerged as one of the resilient cities in terms of demand supply dynamics. For the first time, Hyderabad had the maximum
share in leasing volume at 2.5 million sq ft surpassing Bengaluru, as occupiers focussed on large block deals and even leasing entire buildings. BFSI and Flexible workplace sectors
had the maximum share in leasing volume accounting for 66% of the total demand in Hyderabad. Rai Durg saw the maximum leasing traction accounting for 53% of
the demand, while Hitec City contributed 40%. On a YTD basis, Bengaluru continues to be the market leader, the report mentioned.

Leasing share by flexible workspace operators also rose in Q3 2021 owing to high demand from occupiers looking for managed spaces and short-term leases to tide over uncertain
times. Share of flexible workspaces in leasing increased to 26% in Q3 2021. Leading flexible workspace operators focussed on signing large block deals exceeding 100,000 sq ft in
almost all major cities seeing increased interest from corporates for managed spaces. Pune accounted for the highest share in flexible workspace, followed by Hyderabad,
according to the report.

The quarter saw the highest supply since Q2 2020 at 10.8 million sq feet in Q3 2021 with Hyderabad and Pune contributing the maximum share at 29% and 25% respectively. The
second wave did not have a major impact on the construction activity. Developers continued to focus on leasing existing stock and received OCs for buildings with pre-commitments,
report mentioned.

Source: The Economic Times

Festive season to put realty sector on a high growth trajectory

The real estate sector has shown indomitable resilience time and again and each time, the growth has been stronger. This year, the festive season is adding zest to it. The buyers consider the festive season as an auspicious time to buy their dream homes and this is setting high growth prospects in the housing market. Besides, the pandemic has induced the realization of owning a house to ensure the safety and security of livelihood. Coupled with this, an amalgam of factors including health and wellness, comfort, security along stable and guaranteed returns over investments, have also become the determinants that are propelling housing demand in this season.

According to the Industry reports, the real estate sector has made a strong rebound and housing sales have jumped over two-fold during the July-September 2021 period at 62,800 units across seven major cities. The surge was witnessed due to the better demand, driven by low mortgage rates and hiring in the IT/ITeS sector. People are also attracted towards the housing sector for investments as their savings have increased, apart from better job security along with record-low home loan interest rates, and growth in homeownership sentiments.

Incentives like stamp duty cuts in some states, and the availability of multiple and easy financing options are also leading to the boost in the residential market across cities. Real estate has emerged as a viable option owing to its relative safety and assurance of stable and regular returns. The pandemic has also led to NRIs eyeing investment in the homeland amid a sense of security.

Capturing the spirit of the festive season perfectly, developers are leaving no stone unturned to offer maximum satisfaction in the customer-centric market. Bigger customizations with dedicated workspace, study rooms, modern kitchenette, fitness and entertainment zones, and balconies are dominating the consumer demand and developers are incorporating all
these features in their residential offerings. Modern high-rise apartments, gated townships, and luxury towers with well-managed infrastructure have become the most sought-after choice driven by interests from NRIs, UHNIs, ex-pats, corporate professionals, millennials, and business leaders, amongst others.

Even ready-to-move-in spaces will continue to remain the topmost priority of the homebuyers looking for quick possessions. The current sentiments are in favour of the buyers that have enabled the fence-sitters and even first-time buyers to go ahead with their purchase decisions. For them, the housing segment has remained the safest investment option and favourable government policies, lucrative offers are keeping the sentiments of investors buoyed in the market, which is likely to continue in the coming quarters.

Moreover, the emergence of organized real estate market in state capitals and tier-2 cities has greatly improved the demand-supply ratio. As realty costs in tier-2 cities are relatively low than in tier-1 cities, there is a greater demand for quality housing in these markets. As per an Anarock survey, there is a demand surge in residential properties in tier-2, 3 cities including Amritsar, Chandigarh, Lucknow, Indore, Kochi, Coimbatore, Jaipur, and Ahmedabad which are set to become the destination-next of real estate. The demand here is also fuelled by NRIs who now aspire to own a house in hometowns, which are mostly tier-2 and tier-3 cities. The future livability, growth of professional opportunities, and benefits like large open spaces, ability to stay close to family, low pollution, enhanced social and physical infrastructure, etc. are attracting homebuyers.

The festive season is ushering in an auspicious period for all stakeholders with positivity and more capital to invest. The situation is under better control and the vaccination drives are giving confidence. The housing demand and supply will experience an uptick in the next quarters. The potential homebuyers can reap maximum benefits from the positive sentiments in the market supported by financial cushioning to make the best decision on their real estate investments.

Source: Financial Express

Improved affordability of residential assets, lowest-ever interest rate pushing home loan demand

Favourable demographics, improved affordability of residential properties and historically low mortgage rates are pushing the demand for home loans, mortgage lenders said. Several
major banks, mortgage companies and housing finance companies have significantly reduced their interest rates on home loans during the festival period to encash revival in housing
demand after the second wave of the COVID-19 pandemic.

In some cases, the interest rate on home loans is as low as 6.5 per cent. Asked about the likely impact of its decision to cut mortgage rates for the festive season on home loan
disbursals, HDFC Managing Director Renu Sud Karnad said the lower interest rate does help but it is just one of the many variables for the pick-up in demand for home loans.

“Housing today is much more affordable than it ever was. In the last couple of years, property prices have more or less remained the same across the country while income levels
have gone up,” she noted. Karnad further said people are upgrading to bigger size apartments because of the requirements of additional space post-outbreak of the COVID-19
pandemic.

“Work from home, education from home and entertainment from home due to the pandemic have also made people realise the need for an additional space
at home,” she said. Y Viswanatha Gowd, managing director and CEO of NSE -0.75 % Finance, said the company is positive because there is demand for ready-made
houses.

“Already pent-up demand is there and even the job market is experiencing an upswing. Even the sentiments of our customers are on the rise because markets are getting opened up.
Vaccination comfort has given more confidence to people to move around and physically go and see properties and choose,” Gowd said.

Gowd expects housing demand to remain strong during this festival season and beyond, especially in the readymade home segment and in the affordable home segment.
Property consultant Colliers India new CEO Ramesh Nair said several banks in India have cut home loan rates ahead of the festive season to encourage homebuyers. “This will spur
demand for homes across the spectrum — in the affordable, mid and premium segments. Already the stage is set for a revival in housing demand. This was enabled by stable housing
prices, rising salaries in technology sectors, and the greater need to own homes,” he said.

Nair opined that the recent rate cuts by banks is a positive initiative for homebuyers, and will nudge homebuying sitting on the fence.

According to Nair, as of August 2021, the disbursement of housing loans grew 9.2 per cent from the year-ago period.

“This is a good sign, and home loan disbursements will further rise in the upcoming months,” Nair added.

Karnad further highlighted that demand for housing and home loans has improved because of various positive factors. “So a combination of factors viz., favourable demographics,
improved affordability, lowest ever interest rates on home loans in India are pushing the demand for home loans,” said HDFC MD.

Karnad said the sentiments in the real estate market and housing finance have improved on the back of a strong recovery in economic growth and lower job losses than anticipated.
“…much lower job losses against what was feared during the pandemic followed by good recovery in economic growth and sentiments have resulted in improved confidence which is
very vital for one to take biggest investment decision in life i.e. buying a house,” she observed.

On festive season housing sales and home loan disbursals, Karnad said the festive season is considered as an auspicious time for buying a new house and it boosts the real estate
market in India.

“Having said that, we have seen healthy growth for home loans not just during the festive season but also during the normal course of year…,” she said. V Swaminathan, CEO of
Andromeda and Apnapaisa, said banks are looking to capitalise on this festive season by offering home loans at a record low interest rate. Swaminathan said the housing loan market
in the country witnessed a rebound and registered a year-on-year growth of 9.6 per cent in terms of portfolio outstanding (PoS) in the third quarter of 2020-21.

Meanwhile, as a part of the festive offer, Bank of India on Sunday announced a 35 basis point reduction in its home loan interest rates and a 50 basis points reduction in vehicle loan
interest rates with the minimum rate now starting at 6.50 per cent against 6.85 per cent on home loans and 6.85 per cent against 7.35 per cent earlier on vehicle loans.

This special rate, which is effective from October 18, 2021, till December 31, 2021, is available for customers applying for fresh loans and also for those seeking transfer of loans, the
bank said in a statement. It added that processing charges are also waived for both home and vehicle loans till December 31, 2021.

Source: Economic Times