Shravan Gupta: How have loans triggered the real estate boom?
It has been a general perception to have your own home. But it has never been as easy as in 2021. Reports suggest that most homes have been purchased in the pandemic period. This holds for Indian real estate companies. Real estate as a sector has undergone much change and it is easier to get loans from the bank. And has happened despite these being pandemic times making Real Estate the most lucrative sector. According to Shravan Gupta Real estate as a sector has grown more than 4% in 2 years alone. He believes that this trend will continue till mid-year 2022. Hence it makes sense to invest in housing despite these being trying times.
It is wrong to assume that growth in Real Estate is accidental but it is much more than that.
Certain changes have been more visible in the banking sector. And its precisely this factor that has led to a boom in the real estate sector.
Some change is also due to the fact that people have realized the value of buying homes rather than staying in rented homes. And this is due to these changes in the banking sector:
- Cheap Home loans- Home loans have never been more lucrative than ever. According to experts, home loans are at an all-time low and are available for only 6.7%. This has caused people to buy their own homes and trigger a sudden surge in the real estate sector. This offer is more lucrative for our youth and middle-income class group.
Shravan Gupta feels that the top 7 cities witnessed the most sales in terms of housing. And this has been attributed to the sale of more than 2.7 lakh units.
- Changing views- Today People know it is wise to buy a house as an investment. Real estate is a sound form of investment and goes a long way in fulfilling your dream of buying a home. It has been estimated that sales of flat post COVID have been more progressive than ever.
- Changing nature of buildings- Most buildings are made by keeping in mind the higher middle-class group. These are first time buyers who are willing to invest in a home loan. They also have the buying capability that makes it easy to get home loans.
- Mid-income homes- Most builders like Shravan Gupta have realized the value of building mid-income homes. As this is the only sector that is growing at the most progressive rate
Home loans have never been the most Progressive in decades. And it is precisely this that has led to the real estate boom. Hence it wont be wrong to assume that Real estate will grow more progressively in the coming months. And led to growth in the overall Indian economy.