The industry roared back to life post demonetization and primary residential sales rose across the cities by 21%.
Despite the nation’s real estate industry suffering a slump after demonetization, the effects have started to wear off in the top eight cities of the country, reported Economics Times. According to Liases Foras Real Estate Rating and Research, a well-known real estate agency, primary residential sales across the eight cities show that effects of demonetization are starting to wear off.
As per data, primary residential sales across the cities rose 21% in the first quarter of 2017, selling about 61,214 units, up from 50,788 units in the previous quarter. The cities that are leading the recovery were Kolkata, Hyderabad and Ahmedabad with growth rates of 47%, 43% and 30% respectively.
While the YOY growth was still 5% lower, this was down to weak markets in Chennai and Bengaluru with sales falling 44% and 35%. Meanwhile, the Delhi NCR and Mumbai Metropolitan Region showed growth rates of 24.5% and 23.6%.
Meanwhile, over the last year, home loan interest rates have already eased more than 100 basis points and come down to a six-year low of 8.35%. On Monday, the SBI reduced home loan rates further between 10 and 25 basis points, and the revised home loan rate is the lowest since 2009.
While the SBI offered 8.35% on home loans up to Rs 30 lakh, and 8.5% above Rs 30 lakh, and 8.6% on home loans above Rs 75 lakh. SBI has also been helping borrowers to avail subsidy of Rs 2.67 lakh to eligible customers under the Pradhan Mantri Awas Yojana Scheme.
Meanwhile the LIC Housing Finance Limited offered 8.4% on loans up to Rs 25 lakh and Bajaj Finance is offered home loans of 8.5% upt o May 16. HDFC cut its interest rates to 8.5% for new customers.
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