Rise in Property Rates and Home Loan Market

Bharat Prajapati By Bharat Prajapati, 29th Oct 2010 | Follow this author | RSS Feed | Short URL http://nut.bz/1gt.ylfc/
Posted in Wikinut>Money>Loans

Real Estate market in India has taken a big jump and is growing more rapidly than before, causing many middle class people to think before buying the property. The commercial capital of India (Mumbai) has been targeted by the builders and this result

Rise in Property Rates and Home Loan Market

Real Estate market in India has taken a big jump and is growing more rapidly than before, causing many middle class people to think before buying the property. The commercial capital of India (Mumbai) has been targeted by the builders and this results in rise in property rates. Many big projects are under construction in this capital and builders like Lodha, India bulls, Orbit, Raheja, Hiranandhani, DLF Group, etc. are in the market to construct some really big luxury skyscrapers in Mumbai. Moreover, in a way to sell their ready-made flats, they themselves offer home loan with special interest rates to people who willing to buy their flats.

A piece of brick (sq.ft) in Mumbai would cost around Rs 5000 – Rs 1 lac. Which means if one buys a 1000sq.ft of flat he may lend up paying a sum of around Rs 50 lac – Rs 12 crore (excluding other charges). Whereas, the same flat in Delhi could you around 15k to 60k per sq.ft., In Chennai 3k to 20k, In Bangalore 3k to 18k, In Pune 3k to 10k.

Many finance institutions have jumped in this market to give home loans to every eligible individuals in a view to fulfill their dreams on installment basis. Public sector and private sector banks are competing with each other to offer the best home loans in India.

Home loan rates may vary from 8% to 17%. Hence, before taking any loan, try home loan emi calculator to compare the kind of loan amount and emi in which you are eligible for. Try to know what documents required for home loan and its process. Consult your finance adviser to know the exact process of buying a home, don't take any decisions before making research on your plans.

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