Delhi, India (PressExposure) September 05, 2009 -- Lower home loan rates, property price [http://www.zameen-zaidad.com/home-loan-application-form.aspx] cuts, apartment downsizing and a recovery in the job market have helped to increase demand for residential projects. On showing interests by buyers, developers and builders have launched many new affordable projects across the cities. During early period of this year, interest in properties were being shown by business class and professionals whereas service class was not showing any interest owing to risk of job layoffs. Now on diminishing the risk of job layoffs, service class has also started showing interest in properties. Low property price is another aspect which has attracted the service class to real estate sector leading to a strong revival in demand for residential apartments.
With the return of liquidity to the real estate sector [http://www.zameen-zaidad.com/] in form of FDI (Foreign Direct Investment), QIPs and bank loans in recent months, the financial position of realty players has started improving. Motivated by this, the developers and builders have started launching new affordable apartments to boost the real estate sector.
RBI has relaxed certain norms for realty companies. Loans granted by banks to housing finance companies for further lending to individuals for purchase/construction of dwelling units, may be classified under the priority sector if the loan amount granted is less than Rs 20 lakh. Priority sector lending attracting lower rate of interest will boost real estate sector.
Price reduction by 20-40% depending on project location and reduction in apartment size have brought a greater section of buyers into the fold. The increasing demand has induced many builders and developers to launch many new projects. The new launch tally is on increase. Downsizing apartments has reduced the cost of dwelling units by 50% enabling a lower segment of society to select a house at a better location or at the same location but at a lower cost. Cheaper home loans have further attracted more and more home buyers.
All these aspects have shown signs of recovery in real estate sector.