Why do real estate prices in India keep rising always?
Due increament in circle rates is one of the factors .
Real estate prices in India can be influenced by a variety of factors, such as population growth, urbanization, demand and supply dynamics, economic conditions, interest rates, government policies, and inflation. Additionally, land availability and zoning regulations play a significant role.
Prices in India keep rising always because The increasing population and urbanization put pressure on available land, leading to higher demand. Economic growth and urban development can also drive up property values.
Government policies, infrastructure projects, and interest rates can impact the market's stability. It's a complex interplay of these factors that contribute to the continuous rise in real estate prices in India.
Home Loan Gets Higher interest Rates in 2023
Prices moved up, As sales rose at good pace.This positive momentum is expected to continue in 2023 despite of Increase in Loan Interest rates.
The index, which tracks the EMI (Equated Monthly Installment) to total income ratio for an average household, captures movement in key constituents like property prices, home loan interest rate and average household income to determine the buyers' ability to purchase a house.
Banks generally underwrite home loans when the EMI to Income ratio is under 50 per cent, and this is deemed to be the threshold for affordability by the index.
Despite changes in Repo Rate by RBI, Property prices increament , demand for commercial and residential property was higher till last quarter 2022.
As increase in Repo Rate ,now effected Home Loan Interest rates. There will be decline in housing demand in 2023.
| Bank Name | Floating Interest rate | Per lac EMI | Benchmark Rates on | Processing Fee | Prepayment Charges | % Change in last 6 mths | ||
| SBI - State Bank Of India | 8.70% - 9.40% | Rs.881 - Rs.926 | 7.70% | Nil till 31.01.2023 | Nil |
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| ICICI Bank | 8.40% - 9.45% | Rs.862 - Rs.929 | 5.4% | Upto Rs.2,999 till 30 Nov 2022 | N.A |
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| HDFC Ltd | 8.65% - 9.85% | Rs.877 - Rs.955 | 17.45% | 3000 + Tax (Salaried), 5000 + Tax (S. Employed) | Nil |
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| LIC Housing | 8.30% - 9.80% | Rs.855 - Rs.952 | 15.80% | Below 1 Cr: Upto Rs.10000 + AT Above 1 Cr: Rs.20000 + AT | Nil | No Change | ||
| Bank of Baroda | 8.45% - 9.80% | Rs.865 - Rs.952 | 7.70% |
Looking at the Real estate sector, the ability of people to buy houses is also increasing.Recently a week agoHDFC also increased its lending rates by 0.35%
