Demand For Homes Likely To Pick Up In Medium-Term, Says Report
The demand for residential real estate is likely to pick up in the medium-term, following improvement in end-user participation, increasing launch of affordable homes and implementation of the real estate law, says a report by rating agency Crisil Ratings. In the short term, however, the demand is likely to stay muted, the report added.
"Between fiscals 2019 and 2021, residential demand is estimated to log a compound annual growth rate of four per cent led by key micro-markets of Bengaluru, Hyderabad and MMR. Though marginal, the growth will be driven by first time buyers, eyeing units in mid-income tickets typically priced between Rs 25 lakh to Rs 1 crore," Crisil research director Rahul Prithiani told media.
Meanwhile, data available with the government also show that around 2.75 lakh beneficiaries have availed of the Credit-Linked Subsidy Scheme (CLSS) to buy homes. The subsidy scheme was launched in June 2015 under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) for promotion of affordable housing for the economically weaker section, the low-income group and the middle-income group.
While Gujarat topped the chart with highest number of beneficiaries who have availed of the scheme, Maharashtra and Madhya Pradesh followed. Over 88,000 beneficiaries have been disbursed credit in Gujarat while 74,000 people have availed of the subsidy in Maharashtra.
Under the CLSS, the Union Housing and Urban Affairs Ministry provides a subsidy of up to Rs 2.67 lakh to the beneficiaries.
Meanwhile Central's nodal agency National Housing Bank said November 28 said it disbursed Rs 3,270 crore subsidy to more than 1.43 lakh households so far this year under the CLSS scheme of the PMAY.
Another financial lender HDFC provided loans worth Rs 9,800 crore under the CLSS scheme to customers in the economically-weaker section (EWS), low-income group (LIG) and medium-income group (MIG) segments. On a monthly basis, HDFC has been approving over 8,000 loans for the EWS and LIG segments.