Friday, August 04, 2006

Ground Realty

This actually has been a subject of recent discussions. Pune's property boom! Now this is implicit that the boom as been driven majorly by the increasing salaries in the city. Of which, a major factor has been the IT surgence. But the another factor was the lowered house loan rates.
Typically before the banks hiked their loan rates, floating interest rate was 9.0 % and fixed interests rate was 10.5 %. Now even after the hike of 50 basis points, will demand a monthly rise of average 500 Rs, depends on the loan you are opting for. Now if the household monthly income of salaried professionals is touching 50,000/-for Non-IT and about 1,00,000/- fo IT, it doesnt sounds like a big deal shelling out 20,000/- in EMI's,does it?
Analysts believe that its ok till the rates dont exceed Rs. 3000/sq.feet. The rates will eventually stabilise below that. But I dont personally think that the boom is going to come crashing down in the near future. At least in down-town Pune.
What do you guys think?

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