The rising interest rates will bring down loan affordability of homebuyers, Knight Frank warned on Monday.
A sharp rise in inflation has forced the central bank to raise interest rates and suck out excess liquidity in the market, but it could expose the home segment to a significant headwind, the realty advisory firm said.
The 50-bps hike in the REPO rate in June Monetary Policy Committee (MPC) announcement came on the back of a 40-bps increase in May. Further, the significant 1 percentage point increase in the FY23 consumer inflation estimate to 6.7%, which was higher than RBI’s upper tolerance band of 6%, and it would mean further rate hikes, it said in a statement. Home loan rates are still approximately 150 bps below those prevailing in 2019 and a reversion to those levels will result in an 11.73% increase in the EMI load for the homebuyer, which means a 3.38% decrease in affordability, as per Knight Frank’s Affordability Index.
Land disputes dominate the majority of appeals involving the Greater Hyderabad Municipal Corporation (GHMC).
Of 21 pending trials, the civic body is handling 14 of them pertaining to property disputes. These include encroachment on government land, land acquisition disputes, land grabbing, etc. Six other appeals to the Supreme Court involve service-related matters, mainly pay disputes. Continue reading
Depreciation of property value is the decrease or dip in the selling value of your home. This is calculated as the ‘factor’ product of the total value of the property with the age of construction. For independent houses, it is the building component which depreciates while the land is valued at market price. Continue reading
After years of preparation and drafting, the union government has finally given the green light to a Model Tenancy Act (MTA) 2021, which aims to make rent laws more equitable for landlord and tenant, and smoothen the processing of renting a home. Such an act had become necessary to achieve the target of constructing 20 million houses for the urban poor by 2022 under the Pradhan Mantri Aawas Yojana. Continue reading
The State government is likely to increase the stamp duty-cum-registration fee from 6 per cent to 7.5 per cent and the revised rates are expected to be implemented from Thursday. These charges had not been revised in the State for the past eight years. Continue reading
The Telangana government has earned revenue of over Rs 2,000 crore with the auction of 49.949 acres of land in Kokapet area in Hyderabad with the highest price being Rs 60 crore per acre. Continue reading
After deciding to auction unutilised government land, the state government is mulling to increase land values for property registrations. After GST and excise, revenue earned through property registrations is the third highest source of revenue for the government. Continue reading
Despite the pandemic, the real estate industry in Hyderabad recorded brisk business in April and May, with at least 40 major residential projects of multi-story buildings having applied for permissions.
To regulate unabated unauthorised constructions in the city, the Greater Hyderabad Municipal Corporation (GHMC) has constituted a special task force (STF) to inspect all the ongoing constructions and initiate action, including demolition. The STF will also have powers to seal the buildings. Continue reading
Registration of land, properties and vehicles resumed in Telangana with the extended relaxation hours coming into force in the ongoing lockdown from Monday.
The resumption of services came following the decision of the Cabinet to allow registration of lands, properties under the Stamps and Registration Department and vehicles registration under the Transport Department during the working days. Continue reading