Increase in number of persons who buy house/flat
Posted on: 29/Jan/2016 3:57:37 PM
The sales of houses & flats have increased in regent times especially in the 2nd-tier cities.
AS a sequence, there is a rise in the number of individuals applying for house loans to the banks.
Real Estate is leading in the business industry in metro cities like Chennai, Mumbai, Delhi, & Kolkata.
However, they are quite costly. Relatively cheaper houses/flats are available only at a long distance from the central past of the city.Hence, house/.flat sales has picked up in the 2nd-tier cities.
Construction of houses/flats all over the 2nd-tier cities has spread and the real estate business is flourishing.Even those who were determined to buy flats only in cities like Chennai have now changed their minds and started buying flats/houses in 2nd-tier cities.
As regards the state of Tamil Nadu, real estate has picked up in cities like Madurai, Coimbatore, etc. This trend is equally applicable in other states of India as well.
As housing loan offers from several banks are readily and easily available, there is a considerable increase in number of persons opting to buy houses/flats.
For example, there is a huge relal estate business, especially multi-storeyed apartments, in cities like Agra In Uttar Pradesh, Rajkot in Gujarat, and Bhubaneswar in Orissa
Banks inform that there is a considerable increase in the number of people applying for housing loans.
Banks have disbursed housing loans for Rs. 7 Lakh Crores till last November.
There are no major difficulties faced by the banks while extending housing loans to individuals (as these are safety clauses for individual loans) as compared to corporate. As the loans are given through pledges, there is no major concern about repayment.
It has been estimated that 11 Crore houses will be required by the year 2022 as per the Prime Minister`s Scheme, House for Every Citizen.
As per the estimation by Reserve Bank of India, there has been a growth of 12.2 percent in the quantum of housing loans extended by banks over the last 6 years. This is considered as a high growth. It is worth noting that housing loans constitute one-third of all loans extended by banks.
