All-time low interest rate, small town demand leading real estate recovery

New Delhi, August 22 (FN Representative) An all-time low interest rate and a demand from small towns have led the recovery in the real estate sector which has been one of the worst-affected by the pandemic, said fintech firm Basic Home loan. Sharing the findings of its survey which covered 1,000 respondents in 25 cities, the firm said that 5 in 10 people still trust their friends and family for primary advice to buy a house rather than rely on information provided by realty brokers or realtors. As per the survey, only 16 per cent of the people trust brokers, while 17 per cent of them go online to get the required information for buying a home. The survey also found the choices of the respondents in terms of the size of houses and said a majority of them — nearly 54 per cent — preferred a 3BHK apartment.

The post-Corona ‘Work from Home’ culture has also changed the preference of the buyers. While earlier people wanted an extra room or space to create a workout gym or nursery, now as many 45 per cent of the participants preferred extra space to operate as an office workspace. ”As a society, we have always been reluctant to pay for professional advice. We always tend to look for that first advice within family and friends, as we believe it’s most genuine, plus helps save up. The survey results reflect the same,” said Atul Monga, Co-founder and CEO of BASIC Home Loan.

“However, the same is a myth and a perception that’s bound to break ground. A local real estate expert will always provide wider choices, carry sharper know-how on the minor details of a property, as well provide advantage of price negotiation skills,” he added. Despite the pandemic and a series of partial and complete lockdowns during the last 15 months or so, the housing sector has seen a steady increase in buying as the interest rates on home loans touched an all-time historic low of less than 7 per cent in India, said the fintech start-up. As per CRIF High Mark, the surge in home buying has been led by the smaller centres in India, as home loans in tier-II and III centres grew by 10.9 per cent and 13.3 per cent respectively during the first nine months of FY21.