Bank credit to housing sector falls to 9.5%: RBI
Bank credit to the housing sector came down to 9.5 per cent in FY13, from a high 13.3 per cent in FY08
Jun 28, 2013
Source : The Hindu Business Line

 

MUMBAI: The Reserve Bank today said despite a steep fall in bank credit to the housing sector, which in turn brought down demand, house prices in some of the major urban centres have been on the rise.

“Bank credit to the housing sector came down to 9.5 per cent in FY13, from a high 13.3 per cent in FY08,” the half—yearly financial stability report of the RBI said today.

It said this was despite the fact that house prices in some metropolitan cities have witnessed significant increases in the recent past.

Calling for better and closer monitoring of the sector to stem any possible bubbles, the report said adding it is linked to as many as 250 sub—sectors, reflecting its crucial role in the economy.

On the positive side, the report notes that NPAs in home loan category have also fallen in the last three years.

It observed there was a growing tendency of completely up—fronting of construction finance by home buyers to developers in some cases and availability of construction finance to developers at rates on par with those for home buyers.

Indicating that housing sector needs to be monitored closely since there are indications that price to annual rent ratios in some parts of metros like Mumbai are as high as 50.

“In addition, there is also a need to develop indicators other than price and volume indices and credit to the housing sector to gauge the trends in and the overall health of the sector,” the report said.

The report said there is an urgent need to evolve new indicators like — the house price to household disposable income ratio, household financial obligations to household disposable income ratio, land price indices, index of construction costs, price to rent ratio and information on ownership of houses, among others.

Calling for more transparency in real estate transactions, the report said, such a step could help protect the interest of consumers and prevent money laundering.

Latest Realty News

Tumkur Road industrial belts push realty growth in Bangalore
Jun 28, 2013
BANGALORE: Bangalore west has primarily developed over the years into a residential hub with Rajajinagar, Basaveshwaranagar, Malleswaram, Yeshwanthpur, Mathikere, Mahalakshmi Layout, Nandhini Layout and Chandra Layout being some of the prominent localities.
ORR connectivity makes it a corporate destination in Bangalore
Jun 28, 2013
BANGALORE: The Outer Ring Road (ORR) is a veritable example of the kind of realty development that can take place if access and infrastructure are put in place. The ORR has not only become the most favoured address for IT Special Economic Zones (SEZ) and large retail brands, it is also the destination of residential units catering to the workforce employed in these IT companies.
Buy a home only when you are ready
Jun 28, 2013
BANGALORE: The right time to take a home loan is when you want to buy a house. After all, a loan is a means to an end. You should not time your purchase of property based on the interest rate cycle. This is even true for floating rate loans (and 95 percent plus home loans are on floating rate basis). After all, in theory at least, if the interest rates drop in the future, you will get the benefit of the rate drop at that time.
Construction delays make buyers pick resale homes
Jun 28, 2013
BANGALORE: New home sales may be few and far between, but resale of properties is booming. Sale of such properties is up 40% across the country in the last six to eight months as buyers become more risk-averse looking at the enormous construction delays, property brokers and financial institutions say.
‘Happy times are here again’ for prospective buyers in Bangalore
Jun 28, 2013
BANGALORE: Although the Bangalore residential market has been healthy and averaging around 30 per cent across the city, apparently not all segments are reporting good news. According to several real estate agents the higher end market is not shining as much as expected.
Casa Grande plans to construct over 1,000 villas
Jun 28, 2013
CHENNAI: Real estate developer Casa Grande today said it proposed to construct over 1,000 villas this fiscal and has projects worth Rs 1,250 crore in the pipeline.
‘Go Green: Reduce energy consumption by 50 per cent’
Jun 28, 2013
BHUBANESWAR: Green homes can reduce the energy consumption by 50 per cent. Mili Majumdar, Director, Sustainable Habitat Division, The Energy and Resources Institute (TERI) tells Shradha Goyal of MagicBricks.com Bureau, why India needs more home owners to think green.
I had no idea of Seashore investment in my film: Himanshu Khatua
Jun 28, 2013
BHUBANESWAR: Award-winning director Himanshu Khatua, whose movies 'Sunya Swarupa' and 'Kathantara' won critical acclaim spoke on the present status of the Odia film industry, controversy over his latest film 'Matira Bandhana' and the Gen-next filmmakers in an interview with Minati Singha. Excerpts:
Seashore bid to win back trust
Jun 28, 2013
CUTTACK: While CMD of Seashore group of companies Prasant Dash is cooling his heels in jail after his bail petition was rejected by a court in Koraput, the company is making efforts to win back the trust of investors.
Pune’s new ‘green living’ is a fast-emerging concept
Jun 27, 2013
PUNE: Over the last decade, people’s lifestyles have evolved into an important and often decisive factor in the Indian real estate industry. With the increasing presence of the IT/ITeS sector in many cities of the country, a large segment of Indian home buyers have entered a higher level of affordability and therefore, tastes in homes. This has led to a greater emphasis on larger sizes, evolved ambience and interior décor in the choice of properties.

Latest Realty News Of State

Realty Talk's