HYDERABAD: The cut in the rate of interest on home loans has given a new lease of life to the struggling realtors and home builders in Hyderabad.
With the city’s realty sector being in doldrums for the past four to five years, the recent interest rate cut is seen as a welcome move by the industry.
“The interest rate cut announced by the Reserve Bank of India will definitely have a positive impact on home buyers. Already, all major banks such as State bank of India, ICICI Bank and Axis Bank have cut the interest rate, thus passing on the benefit to home buyers. We believe that this will entice people into buying homes now,” said K Gopala Krishna, director of Gowra Hallmark Townships and treasurer of Telangana Real Estate Developers Association (TREDA).
The impact of the rate cut has become evident at the recently-held TREDA Property Show, where stalls of banks and home loan companies received enquiries from prospective buyers in big number.“The interest rate cut has spurred home buyers to think of buying and make enquiries. Our home loans division, which has been facing a lull, is now brimming with activity and new queries from prospective home buyers have increased over the past ten days,” said T Hanoji Rao, assistant general manager (home loans sales) of State Bank of India, Hyderabad.
The home loan divisions of almost all banks are now busy answering queries over the past ten days owing to buyers’ renewed interest.
But will these enquiries translate into purchases is a moot question.
“Just a cut in interest rate will not make a person to buy a home. But for those who are already looking to buy or planning a home, the rate cut will definitely help in speeding up their decision and zeroing in on a property to buy,” said M Vishal Kumar, a techie who is planning to buy a home in the city.
Also, with most of the home purchases in Hyderabad at present being made by employees from the IT sector, who depend on home loans, the interest rate cut is seen as having a positive contributing effect on these employees thus leading to an increase in home sales.
Thus, with the rise in queries and positive mood among buyers, Hyderabad realtors and builders are expecting a rise in home sales in the coming days.
The Mood Now
■ Home loan interest rate cut gives a new lease of life to builders.
■ Home loan enquiries from prospective home buyers increasing at all banks.
■ The impact was evident at the recently-held TREDA Property Show.
■ Builders in Hyderabad expect a rise in home sales in the coming days
‘Growth of Realty Hinges on Employment Creation’
P Surya Prakash, managing director of Satyavani Projects & Consultants, stresses the importance of proper investment planning while deciding to buy a home. He also stresses the need for creation of more employment opportunities in and around Hyderabad for the realty sector to get back to boom as signs of recovery are just showing up. Here are excerpts of his interview with Express:
How is the Hyderabad realty sector now?
It is showing signs of recovery and definitely better that what its was a year and a half ago. New launches are taking place and people are coming out with plans to buy homes.
Can we assume that bad times are over?
We cannot say that yet. Though the situation is better now, still a lot has to happen.
What steps are needed to get back the days of boom?
Creation of jobs in and around Hyderabad is needed for realty sector to boom. For that the government has to focus on bringing industries and software companies to the city. If jobs are created, the salaried class will go in for home-buying, thus creating demand for homes. It is heartening to see that the Telangana government is focusing on promoting Hyderabad as investor, industrial and IT-friendly city which will help in drawing in industries and IT companies to the city. But care has to be taken to make sure that these efforts convert into actual activity on the ground.
For home buyers which places are the best now?
Gachibowli, Hitec City, Kondapur, Tellapur and other parts of Western Hyderabad are the most sought-after destinations now and the prices there are at a peak now. My suggestion is any place in the city with good connectivity is a best bet. Even places on the outskirts falling by the side of Outer Ring Road (ORR) are best bet. Once ORR and metro rail become fully functional, travelling from any corner in the city to any other will be easy. Prices will be lower at these places and there will be scope for appreciation in future.