Mumbai: Is that dream house still unaffordable? You think, you missed the bus? Well chances are that, that dream house could still be yours — thanks to the measures initiated by the RBI through successive credit policies in the last one year, like the rise in risk weightage on loans to commercial real estate and residential housing above Rs 20 lakh.
Says CMD National Housing Bank, R Shridhar, "The feedback is that in Bangalore there has already been some correction. There has also been correction in some parts in Delhi and Gurgaon. Builders are offering discounts in Mumbai."
While restricting the developer's access to easy money have not created huge impacts, real estate developers are finding it tough to command a premium on new properties and are hence, resorting to indirect cuts like offering discounts.
SOPS For That Dream House:
- Tying up with banks to offer portion of your loan at 8 per cent, fixed, and the rest at market rate.
- Some builders are also waiving off the first EMI.
- They are saving the stamp duty, which adds up to three to five per cent of the cost
- They also offer various freebies like household accessories
However, real estate developers clearly don't seem happy.
Says Chairman Kalpa-Taru, Mafatraj Munot, "This system will cause more inflation as one has then look at other channels for borrowing, which are more expensive and therefore drive up prices. Artificial curbing is never healthy."
Adds CMD Hiranandani Constructions, Niranjan Hiranandani, "There is a real demand for property, but these measures can only be good in the short-term. In the long term, this is a very unhealthy practice."
Even as the Urban Development Ministry works on additional measures that could complement financial curbs, the one thing that the common man can hope for is that the developers do not form a lobby and further manipulate prices to keep them where they are.