Following the epidemic, the real estate sector has begun to gradually revive, mostly due to end-user demand. Home purchasers may face difficulties as a result of continuous inflation and rising property prices.
According to Basant Parakh, Managing Director of Orbit Group, while interest rates on home loans have risen, they are still cheaper than rates in 2019-2020. “For potential purchasers, this gives an opportunity to negotiate better terms on their house loan. Furthermore, the government’s initiatives on affordable housing and interest subsidies can help to make homeownership more accessible to a broader spectrum of people.
The State Government has also extended the 2% Stamp Duty Rebate through March 31, 2023, as well as a 10% discount in market valuation, providing a significant boost to all aspiring purchasers.”
“There will be some hurdles in 2023 because of the growing interest rate, the expense of building due to inflation, and the global recession,” said Sushil Mohta, Chairman, Merlin Group, and President, Credai, West Bengal. However, the Indian economy is strong enough. Except for some volatility in the long run, the global recession will have no effect on India’s growth story. Developers who are dedicated to delivering will continue to expand.
I anticipate good sales in 2023. The continuation of the stamp duty and circle rate reductions in West Bengal to March 2023 will benefit both purchasers and developers.”
Prashant Chopra, Chairman of PS Group, believes that the impact of inflation, as represented in rising property prices, home loan interest rates, and interest rate hikes, may create a delay in home purchasing decisions. “It will directly influence the interest rate-sensitive sector as EMIs going up can harm affordability. In the case of floating house loan interest, the rate increase may temporarily reduce EMI payments, but it will net out favourably in the long run.
However, as long as interest rates remain in the single digits, the impact on real estate sales will be minimal.”
According to Harshvardhan Patodia, CMD of Unimark Group, property prices have increased moderately across the country due to cost hikes after 5-6 years of steady prices. “There is an influence of interest on home loan, which is likely to balance out home loan tenure. Customers’ disposable money has also increased over the years, and demand is strong. Because inflation is under control, I do not anticipate a significant impact on sales.”
“The latest raise will hurt residential sales volumes in the affordable and mid-segments in the months to come,” said Nitesh Kumar, MD & CEO of Emami Realty Limited. The impact of a rate hike on home loan EMIs, on the other hand, is unlikely to be large because these loans have a longer term. While interest rates are expected to remain at decadal lows, the window of opportunity for homebuyers is closing. It is crucial to recognise that affordability and demand are high, and that the buying momentum is projected to continue. Borrowers have learned how to handle with interest rate adjustments as a result of the pandemic. There has been a fundamental shift in purchasers’ expectations and attitudes towards homeownership, which will more than offset any swings in loan rates.”
“Property prices in Kolkata are practical and affordable despite rising inflation and severe increases in raw material prices for construction,” said Rajvardhan Patodia, Founder, Chairman, and Managing Director of Signum Group. Housing demand in Kolkata has always been strong, and the city has never been a speculative market. We are not witnessing any significant reaction to the current interest rate hikes because they have mostly been reduced to pre-pandemic levels. Real estate purchases are more than just investments since they are emotional. Because of home loan perks, the purchase of large homes has surged among the younger generation. We expect that demand will only grow over time.”
“After Covid, the property prices were elevated by 10-12% due of raw material costs,” acknowledged Manab Paul, Founder Director, Sree Balaji. This is done without providing any additional value to the builders, but rather to alter the cost factor. It was a compelled price increase. Following the RBI house loan adjustment, interest rates were raised by 0.75% to 1%, which had a minor influence on home sales but did not prevent home buyers from purchasing. We witnessed an increase in sales in the residential market.”
“Due to increased connectivity, robust infrastructural development programme in our state by present administration, upwardly mobile consumer’s aspiration has propelled the demand for quality branded homes manifold,” said Nikunj Harlalka, Managing Partner, JSB Infrastructures.
However, as long as interest rates remain in the single digits, the impact on real estate sales will be minimal.”
According to Harshvardhan Patodia, CMD of Unimark Group, property prices have increased moderately across the country due to cost hikes after 5-6 years of steady prices. “There is an influence of interest on home loan, which is likely to balance out home loan tenure. Customers’ disposable money has also increased over the years, and demand is strong. Because inflation is under control, I do not anticipate a significant impact on sales.”
