With recession hitting India, the banks have just today announced some benefits for loans for homes below Rs.20 lakhs. The real estate industry was in a crisis and the best way to get it up is by lowering the lending rate and the requirements for a loan.
The math’s here is simple, if loans are readily available, people will buy new homes hence the real estate developers could sell their property and build a few more which will require steel, cement and other materials.
The prices of properties all over the country have come down but that is not the case with Belgaum, Infact this could be with many tier 2 cities. The price of land on average, which was about Rs.1700 per Sq/ft, has now stagnated at Rs. 1500 per Sq/ft, which is not a great fall.
The builders in past year have many problems of raw materials like high price of steel and cement. The builders think that with the loan process made easy there could be a good business at least in the short run.