HDFC Chairman Deepak Parekh Says Low Interest Rates, Affordable Prices Helping Spurt in Demand for New Homes
Moneylife Digital Team
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Record low interest rates, affordable prices and sucpportive government policies are responsible for the spurt in demand for new homes in recent months – it is not pent-up demand, said Deepak Parekh, Chairman of Housing Development Finance Corporation (HDFC) Ltd on Tuesday. He was speaking at the web release of Moneylife Foundation’s report on “Efficacy of RERA in India”, by Hardeep Singh Puri, Union minister for housing and urban affairs (MoHUA).
“In all of my over forty-five years of working in the housing sector, I have never seen interest rates at such low levels, which along with the fiscal incentives has made housing so much more affordable today,” he said.
Mumbai Homes May Become Cheaper As Levies Are Slashed Mumbai Homes May Become Cheaper As Levies Are Slashed Due to scarcity and high cost of land in Mumbai, developers prefer to build vertically, often more than what the ratio of floor space to total plot area allows.
Construction creates the most jobs in India each year.
Homes prices may fall in Mumbai, India s costliest housing market, after the local administration slashed levies by as much as 50% until December 2021.
Maharashtra state cut various levies on construction projects on the recommendation of a government-appointed committee headed by Deepak Parekh, chairman of Housing Development Finance Corp. The move will likely bring down development costs for most builders and result in lower home prices for buyers in addition to boosting stocks of realty developers.
Synopsis
The premium will be calculated based on ready reckoner rates of 2019 or 2020, whichever is higher. The move is expected to support the property sector by reviving stalled projects, avoid delays and rein in speculative price rise.
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The decision is expected to impact big cities in the state including Mumbai as on an average, one-third of a project’s cost goes towards over 22 premiums collected in the country’s most expensive realty market.
MUMBAI: The government of Maharashtra has approved the proposal to reduce premiums charged by the civic authorities on real estate development by 50% for the next one year until December 31, 2021, as recommended by the Deepak Parekh committee.
MVA Cabinet approves proposal to cut real estate premiums by 50% till Dec 31, 2021
Maha Vikas Aghadi government on Wednesday approved a proposal to cut real estate premiums by 50%.
#MVA cabinet approved proposal to cut real estate premiums by 50%. Ready Reckoner Rates- 2019, 2020 - whichever is higher will be applicable@fpjindia Sanjay Jog (@SanjayJog7) January 6, 2021
The Urban Development department had proposed to lower all construction premiums by 50% till December 31, 2021 for all projects including ongoing and new.
CM Uddhav Thackeray will roll out the package for the real estate sector despite objections raised by the Opposition.
The proposal was debated in previous Cabinet meetings. It was reported that the NCP is in favour of the proposal but Congress has been upset for not being consulted regarding the proposal.