Home loan demand rising in mid, high-range segments

New Delhi, Feb 24: Demand for home loans in the mid and high-range segments is on the rise, showed a survey by Magicbricks.

It showed that that nearly 38 per cent consumers want to take a home loan ranging between Rs 30 lakh and Rs 1 crore.

A total of around 46 per cent of the consumer preference is now in the range of Rs 30 lakh-Rs 1 crore and above category, with most of the demand being generated from the key residential markets of Bengaluru, Hyderabad and Delhi.

The Magicbricks report said that the demand revival can be attributed to several reasons like need for an extra room due to ‘work from home’ (WFH), reduction in circle rates, stamp duty and low interest rates.

As per the poll, about 20 per cent prospective home buyers are planning to borrow a home loan between Rs 50 lakh and Rs 1crore and above category.

Commenting on the consumer trend, Sudhir Pai, CEO, Magicbricks, said: “Thanks to the recent initiatives by the Central and the State governments, we are witnessing a rise in demand for home loans for mid-segment and high range properties.”

“The market sentiment seems to be well aligned to the demand and reflects the same as consumer search data on Magicbricks Home Loans suggests that the average loan amount searched on the platform is Rs 34 lakh. This augurs well for the industry and indicates that transactions are picking up gradually across all segments of residential real estate,” Pai said.

The survey further showed that most of the demand is being generated from the key residential markets of Bengaluru, Hyderabad, Delhi, Mumbai and Pune.

Besides home loans, loan against property (LAP) and balance transfer seems to be gaining currency in terms of consumer preference, it said.