Home Loan Interest Above 9.5% To Have Huge Impact On Sale Of Houses: Survey – News18

Many people who intend to purchase a home think that their choice would be impacted if the interest rate on their mortgage rises to more than 9.5 per cent. This was determined through a research report by real estate consulting firm Anarock. High inflation has reportedly had an impact on 66 per cent of people’s disposable income. As many as 5,218 persons participated in Anarock’s online “Consumer Sentiment Survey”. People like to purchase homes in the midrange and premium segments, the survey has claimed. It added that the majority of buyers are looking for three-bedroom-two-bathroom apartments.

According to Anarock, “98 per cent of the people surveyed believe that any increase in interest on home loans or the interest rate going above 9.5 per cent will have a huge impact on the sale of houses.” According to the advisor, the average interest rate on a mortgage is currently 9.15 per cent. Home loan interest rates have climbed by roughly 2.5% during the past 1.5 years as a result of the Reserve Bank of India (RBI) raising its main policy rate to combat inflation. According to the poll, 59 per cent of prospective homeowners preferred the price range of Rs 45 lakh to Rs 1.5 crore.

Of the people polled, 35 per cent said that they preferred homes costing between Rs 45 lakh and Rs 90 lakh. 24 per cent, on the other hand, preferred homes costing between Rs 90 lakh and Rs 1.5 crore. The demand for 3BHK flats has steadily increased, from 41 per cent in the first half of 2023 to 48 per cent in the current survey as compared to the survey performed in the first half of 2022. The demand for houses under Rs 40 lakh, however, has decreased, as per the survey.

Earlier, according to information provided by the RBI, bank loans for residential and commercial real estate surged by 38 per cent annually in July. As a result, the total amount of outstanding bank loans for the real estate industry has surpassed a historical high of Rs 28 lakh crore.