New wishlist of home buyers: Sub-₹3 cr price, smaller cities

THESE HOUSES ARE BETWEEN 55 AND 135 KM FROM CITY CENTRES, WHICH MAKE THEM AN ATTRACTIVE INVESTMENT FOR FIRST-TIME BUYERS

NEW DELHI: Even as banks have started reducing interest rates on home loans, there are few takers for big credit upwards of ₹3 crore, and the demand has shifted to affordable housing projects in sub-urban areas and smaller cities.

High real estate prices in the metros are also aiding the shift in demand for houses to smaller towns. “Over 75% of the demand is from sub-₹3 crore level. The demand for smaller loans have also increased as newer locations are being explored,” Sanjaya Gupta, MD PNB Housing, told HT.

In sub-urban areas and nonmetros, the highest demand for loans is in the ₹80 lakh-₹1.25 crore range. “These homes are generally at the sub-₹1 crore price levels. These areas are at reasonable distances from the major metros and employment nodes,” said Harshil Mehta, CEO of housing finance firm DHFL.

The distances are generally between 55 and 135 km from city centres, which make them attrac tive investment options for newly employed first-time buyers. Some of these areas include Dharuhera and Greater Noida near Delhi, and Thane and Kalyan near Mumbai

A Cibil study indicated that in 2013-14, over 60% first-time bor rowers sought loans for purchas ing a house or a car.

“We are seeing young buyers in their early thirties coming in to purchase homes, so the ticket size has shrunk but the demand is growing,” said Mehta.

According to the Reserve Bank of India, the housing loan seg ment has shown a credit growth of 18% in September 2015.