The Indian real estate market will witness positive growth and upturn in buyers' sentiments by the end of March 2016, says the global rating agency Fitch. According to the latest report published by the agency, the favorable economic environment and reduction in bank loan interest rates will improve the property market in India and provide major relief to real estate developers in the coming months.
The Reserve Bank of India (RBI) has reduced key lending rates by 0.50 per cent this year, prompting both public and private sector banks to cut interest rates on home loans by 0.15 to 0.25 per cent. The policy rate cut enhanced the lending powers of commercial banks and eventually helped in reducing monthly EMIs on property loans.
The recent developments will boost affordable property segment in India and benefit real estate developers having better exposure to the middle and lower income segments. Many builders are also providing flexible payment schemes to attract maximum buyers for their properties.
The Indian real estate market has witnessed weak sales in 2014 due to high interest rates and policy uncertainty in an election year. While buyers postponed their property purchases till policy correction and formation of the new government, this lead to the huge pile of inventory during the last 12 months.
Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “With a stable government at the Centre, favorable economic environment and lowered interest rates on home loans, the property market is witnessing the winds of positive change. With Fitch forecasted improvement in the Indian real estate sector in the coming months, this will boost properties in Delhi NCR and other parts of the country.”
The Reserve Bank of India (RBI) has reduced key lending rates by 0.50 per cent this year, prompting both public and private sector banks to cut interest rates on home loans by 0.15 to 0.25 per cent. The policy rate cut enhanced the lending powers of commercial banks and eventually helped in reducing monthly EMIs on property loans.
The recent developments will boost affordable property segment in India and benefit real estate developers having better exposure to the middle and lower income segments. Many builders are also providing flexible payment schemes to attract maximum buyers for their properties.
The Indian real estate market has witnessed weak sales in 2014 due to high interest rates and policy uncertainty in an election year. While buyers postponed their property purchases till policy correction and formation of the new government, this lead to the huge pile of inventory during the last 12 months.
Mr. Anil Mithas, Chairman & Managing Director at Unnati Fortune Group says, “With a stable government at the Centre, favorable economic environment and lowered interest rates on home loans, the property market is witnessing the winds of positive change. With Fitch forecasted improvement in the Indian real estate sector in the coming months, this will boost properties in Delhi NCR and other parts of the country.”