In order to increase the sales of homes, Ji Hari Babu, president of Naradco, a organization of real estate companies, has demanded on Friday that the interest rate on home loans should be reduced to around 6 percent. He made this demand for this because sales have seen a decline in the top seven cities of the country during the first six months of this year. According to PTI news, he blamed additional supply, rapid increase in prices of residential properties and economic uncertainties in the world.
Increased prices reduced sales sluggish
According to the news, Real Estate Data Analytics firm Propint has reported a 19 percent decline in sales during the current April-June period and a 23 percent decline in the last quarter in 9 major cities. Property Consultation AnaRock has estimated a 20 percent decline in the latest June quarter in the top 7 cities. Regarding why sales declined, he said that in the last three years, housing prices have increased significantly, affecting the potential of potential customers.
Increase in salary is not eating mail due to increase in prices of houses
During a conference, Hari Babu said that the salary has not increased so much that he can match the increase in the prices of houses. In addition, the Naradco President said that there are additional supply in many cities including Hyderabad. He also said that due to political and economic uncertainties in the world, the feelings of home buyers have been affected. Demand is also expected to be low in the July-September quarter. Asked about the impact of the RBI’s decision to reduce the repo rate in the repo rate from February, the Naradco President said that this has definitely brought some relief to the customers as EMI (equal monthly installment) has come down to 7.5-8 percent.
It is difficult to build affordable houses with high price of land
The Naradco President also advocated a new policy for the redevelopment of slums in Tier I-II cities to bring more land to the market for the construction of housing projects. He said that the cost of land has increased rapidly after the Kovid epidemic. The high price of land has made it difficult for developers to build an affordable home. According to the propIC data, housing sales are expected to be reduced by 19 percent to 94,864 units in the second quarter of this calendar year, compared to 1,16,432 units in the same period a year ago. According to Enarock, housing prices in the top seven cities in the April-June quarter increased by 11 percent on an annual basis, declining sales by 20 percent.
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