Home Loan: Build a house and see.. Get married and see, elders said. It means that these two are very difficult in human life according to the elders. It is a different matter if there are many difficulties now. But now it is becoming very difficult for the average middle class people to fulfill their dream of owning a house. With the increased prices, it is becoming increasingly difficult to buy land. It seems that buying a land and building a house will become a difficult task in the coming days. But banks give loans to wage earners and traders to build houses. Most of the middle class people rely on bank loans to fulfill their dream of owning a home. Many people prefer loans with the idea that they will own a house if they pay in installments. Banks are also lending extensively. But repaying the loan is becoming difficult. Borrowers are struggling with rising interest rates. On the one hand, the increased house prices.. on the other hand, due to the increased interest burden, many people are putting their houses up for sale.
Like this in Hyderabad..
House prices in Hyderabad have increased by 80% in the last four years. According to the latest study by 'Magic Bricks', a real estate consultancy services company, this is the highest increase in real estate prices across the country. The organization has produced a report with house price trends in 10 major cities across the country. House prices have skyrocketed. But as people's incomes are not increasing at that level, the burden of monthly installments for the loans taken for the purchase of houses is increasing, the organization explained.
According to the Magic Bricks study..
Between 2020-24, the growth in income of people in 10 cities of the country is only 5.4 percent. House prices rose by 9.3% during the same period. This has reduced the purchasing power of people's houses.
– House prices have increased by 80 percent in Hyderabad, according to the report.
– While the prices of houses in the cities of Mumbai and Delhi are unaffordable for the middle class, houses are available at somewhat affordable prices in the cities of Chennai, Ahmedabad and Kolkata.
– The share of EMI paid for home loan in the monthly income will increase to 61% by 2024 from an average of 46% in 2020 in our country. This means that the EMI burden on home buyers has increased dramatically.
– Share of EMI in monthly income is 116% in Mumbai, 82% in Delhi and 61% in Hyderabad. This means that people in these cities are allocating a large amount of their family income to pay the home loan in installments. It is 41% in Ahmedabad, Chennai and 47% in Kolkata. It is clear that house prices are somewhat affordable in these three cities.
Along with prices, interest rates..
Sudhir Pai, CEO of 'Magic Bricks' said that in addition to low interest rates in 2021 and 2022. He said that more house sales have been recorded due to availability of house prices. After that, there was a change in the situation, he said. It is explained that demand has slowed down as house prices have increased beyond incomes. It is expected that the increase in house prices in major cities may not be so much for some time.
