Insta
Your Dream Home Isn’t Getting Expensive: Housing Prices See Sluggish Growth Despite Better Credit Access
Swarajya Staff
Jan 01, 2019, 05:24 PM | Updated 05:24 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Even while the real estate sector has experienced higher housing credit growth and more beneficial bank lending rates, house prices across the country have seen very slow growth over the last five years, reports Press Trust of India.
The Financial Stability Report issued by the RBI on Monday (31 December 2018) has revealed that the all-India housing price index reduced to 5.3 per cent in April-June 2018 and that housing credit has declined to 15.8 per cent, while these figures were 16 per cent and 17 per cent respectively in Q1 of FY15.
“Housing prices have been cooling in the last five quarters, despite accelerated housing credit growth and favourable bank lending rates,” the report stated.
The moderation in price growth is due to the large inventory of unsold houses caused by weak demand.
As per property consultant JLL India, 2018 has seen housing sales across seven major cities rise by 47 per cent, albeit on a lower base.
“There has, however, been a pick- up in house sales in first half of fiscal 2019 leading to a reduction in unsold inventory, thereby improving the house sales-to-inventory ratio for major cities,” it said.
The report also details how the current spike in launches is in large part due to of government affordable housing schemes.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.