People have been keen on buying residential properties which has caused a surge in the home loan reimbursements in Gujarat. After the lockdown, many people realized that owning an additional property or a residential one is beneficial to them in the long run.
This caused a Housing loan disbursal surge in Gujarat despite rising property prices and interest rates. And it is prevalently noticeable that the increase in FY 2023 has been quite significant compared to FY 2022. Housing Loan Disbursals surged by a whopping 60% in Gujarat from Rs 26,299 crore to Rs 42,048 crore in just a year. This also can be seen elsewhere as witnessed by the beneficiaries as there has been a substantial home loan rise of 56%. According to the data provided by the State Level Bankers' Committee it rose from 2.73 lakh to 4.26 lakh in one year.
Buyers are starting to realize how important it is to incorporate real estate as an asset class in their asset base since it is a more reliable option that delivers consistent returns as compared to the highly volatile stock market which entails more risks.
The boost in the inclination for buying new homes gave rise to the demand for home loans as many people are considering owning second homes. The major cities in Gujarat like Ahmedabad, Vadodara, Surat, and Gandhinagar are seeking better, upgraded lifestyles moving into spacious homes with enhanced amenities. This creates a demand for high-end property projects across the state in such cities.
Bankers report having noticed the rise in home loan applications from young buyers, Ahmedabad being the center. This is due to the fact that house loans with standard interest rates provide substantial cost savings while generating an asset for personal use or investment. Out of the many known ways for people to save costs while purchasing is buying zero brokerage property.
These savings from a lower equated monthly installment (EMI) can be further used by the borrower to get a top-up loan, which is also provided at a lower interest rate. Borrowers have the opportunity to raise a bigger loan amount with a lower interest rate. This helps to broaden the option of bigger houses with superior amenities and lifestyle facilities in a desirable neighborhood.
More and more people, especially young buyers are investing in buying new homes with their disposable income. The concept of buying a house has been quite in use. The reasons that attribute to this change are - saving them tax and home loans often help with the deduction of income tax. This trend amongst salaried professionals has led to the demand for home loans.
People migrating to Vadodara and major cities like Ahmedabad is an attribute contributing to the surge too. This all scales back to how people often seek a better lifestyle since the Covid-19 pandemic and wish to achieve it in the most profitable way possible.
Developers have noticed that people living in Gujarat are buying houses for sale in Vadodara, Ahmedabad, Gandhinagar, and Surat are searching for chances to invest in new projects with enhanced amenities such as swimming pools, gyms, and jogging parks, further driving the demand. Moreover, developers note that Gujarat is experiencing an influx of young professionals from other states.
The influx of young professionals from other states to Gujarat can be linked back to the upswing of the real estate market. The demand for real estate in Ahmedabad and Gandhinagar has grown exponentially as a result of increased investments in GIFT City, which has also drawn a large number of young professionals to these cities.
The growing demand for new homes is being driven by affluent residents of these regions who are also reinvesting in Gujarat's real estate market. People seeking to buy houses look at all aspects of purchasing property and a market full of rising prices does not help. Property for sale without brokerage is a definitive solution for those that prioritize planning and budgeting.