– Maximum demand for Home Loan in tier 1 cities from Hyderabad, Pune, Ahmedabad, Mumbai, and Delhi
– Most frequently searched Home Loan is Rs.36 lakh for tier-1 cities and Rs.26 lakh for tier-2 cities
Noida, Aug 23, 2021: With interest rates at their lowest ever, India has been witnessing a 42% surge in demand for Balance Transfers (BT) and 26% rise for Home Loans (HL) in H1 2021 vis-à-vis H2 2020, reveals the latest Magicbricks Home Loans Consumer Study – H1 2021.
The report also indicates that there also has been a 20% demand rise for Loan Against Property (LAP) in H1 2021. The soaring demand has been triggered largely by the fact that the Reserve Bank of India (RBI) has kept the repo rate unchanged at a constant 4%, allowing many banks to offer interest rates less than 7% for home loans. This has also been a key driver in augmenting the demand for home buying.
Magicbricks Home Loans Consumer Study also reveals that the most frequently searched HL amount across Tier-1 cities during H1 2020 was Rs.36 lakh, while that for BT and LAP were Rs.26 lakh and Rs.32 lakh, respectively. For Tier-2 cities, it was Rs. 26.lakh for HL, Rs.23 lakh for LAP and Rs.18 lakh for BT.
a constant 4%, allowing many banks to offer interest rates less than 7% for home loans. This has also been a key driver in augmenting the demand for home buying.
Commenting on the Magicbricks Home Loans Consumer Study – H1 2021, Sudhir Pai, CEO, Magicbricks, said, “The rising demand for home loans is in line with the increasing demand for residential real estate across key markets of India. Several initiatives by the Government, such as keeping the repo rate constant and reduced stamp duty rates, are steps in the right direction. These measures have been instrumental in boosting the overall consumer sentiment, making almost 50% of the borrowers opt for tenures less than 15 years. With factors like low interest rates, stable prices, and attractive payment plans, we are hopeful that the pent-up demand would soon translate into sales.”
Magicbricks Home Loans Consumer Study also reports that with Work from Home (WFH) becoming a norm, home buyers are now looking to buy or upgrade to large configuration houses, and thus the demand is mostly in the mid and above segments. Hyderabad, Pune, Ahmedabad, Mumbai, and Delhi are the top-5 Tier-1 cities witnessing maximum demand for House Loans. A similar trend has been recorded in Tier-2 cities like Lucknow, Patna, Indore, Jaipur, and Agra.
In terms of the demand for Balance Transfers, New Delhi, Bangalore, Mumbai, Pune, and Hyderabad were the top-5 tier 1 cities, and Ghaziabad, Mohali, Noida, Indore, and Visakhapatnam the top-5 tier 2 cities.
For LAP, Bangalore, Hyderabad, Chennai, New Delhi, and Pune saw the most demand across Tier 1 cities and Gurgaon, Jamshedpur, Patna, Faridabad, and Lucknow for Tier 2 cities.
Another noteworthy finding from the report is Bank of Baroda, Indian Bank, SBI, HDFC Ltd. and ICICI Bank are the most searched lenders on Magicbricks’ Home Loans platform