| Real Estate Market Falls By 30% |
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Mumbai, April 6 : The latest one per cent home loan interest rate hike announced by the banks have dampened the buoyancy in the real estate market by 25 to 30 per cent. Most of the banks and institutions like ICICI Bank, Punjab National Bank, Housing Development Finance Corporation, Life Insurance Corporation Housing Finance etc now offer a home loan at around 11 per cent floating interest rate per annum.
As a result, the demand of investors for luxurious flats has gone down. The genuine buyers too are concerned about the rise in the Equated Monthly Installments (EMIs) of the home loans. “On an average, a 15-year long home loan of say Rs 10 lakhs taken at 11.25 per cent floating interest rate has an EMI of Rs 11,530 to our customers. The EMI goes down to Rs 10,500 for the same loan if given for a tenure of 20 years. The salaried class middle-income group people looking for flats in metros like Mumbai are facing the heat because the home loans have recently become costlier,” said Housing Development Finance Corporation senior executive Mr Mahesh Shah.             |