Home Prices Likely To Fall With Ban On Subvention Schemes
New Delhi: Those looking to buy homes for themselves in the next few months are likely to benefit from a cut in property prices. The recent move by National Housing Bank to ban housing finance companies (HFCs) from giving loans under subvention schemes will have the effect of lowering property prices, at least in the near future, according to top official of a noted realty player.
When asked about the effect of NHBs directive on pricing of homes, Pirojsha Godrej, Executive Chairman of Godrej Properties said “I think we will have to wait and watch how things play out. And clearly, I think it's this current situation, which is already very bad worsened into a full-blown crisis. I think there's certainly the possibility that in the short term, prices will correct.”
Godrej was reply to an investor query raised during a conference call.
Correcting of the property prices in the coming months will be certainly good news for the customers as there will be a number of festivities that are associated with purchasing assets including property. The next few months mark the best period of the year for home sales for all developers. Interest rates for home loans have also come down recently after the central bank has slashed Repo Rate for four consecutive times this year.
Subvention schemes are those in which the developer pays the pre-EMIs for the home on behalf of the buyer for a certain period, usually until the property is handed over to the buyer.