SBI Home Loan Interest Rate Cut & Analysis

February 15, 2009 Indian Real Estate Advisor 54 Comments

The major news from last week for home loans and residential property is this: State Bank of India (SBI) has frozen interest rates at 8% for a year for new home loan customers. Now SBI has one of the most (if not “the most”) attractive home loan interest rate in India. And SBI is SBI…dependable PSU bank that will not go anywhere till India is intact.

So we are seeing many people getting ready to move away from ICICI Home loans and HDFC Home loans to SBI. Some people have reported that ICICI is charging 11% to 15% even after RBI’s reduction of rates. So in this case, that decision to move to SBI makes good logic, if ICICI or HDFC are not willing to match the 8% interest rate. You should not pay 3-5% more interest than the lowest rate in the market. Continue reading SBI Home Loan Interest Rate Cut & Analysis →

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HDFC Cuts Home Loan Rate Again

January 16, 2009 Indian Real Estate Advisor 5 Comments

India’s largest housing finance company HDFC has reduced home loan rates by as much as 150 basis points (ie 1.5%).

So now, the floating rate for home loans has come down from 11.25% to 9.75%, which is the same level as in 2006.

Real estate advisers say the maximum benefit from this rate cut will be for those people looking for home loans between Rs 20 to Rs 30 lakh.

For home loans below Rs 20 lakh, the reduction is 50 basis points as the earlier rate was 10.25%.

This home loan rate cut by HDFC comes on the back of two successive 50 basis point cuts in deposit rates in recent weeks.

This development is also likely to help the troubled real estate sector by getting them some much needed liquidity.

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Happy New Year 2009 To All Our Readers!!

January 11, 2009 Indian Real Estate Advisor Leave a comment

Hello Readers, how are you doing? We wish you a Happy New Year 2009.

This year, we will aim to share many interesting updates and real estate opportunities with you, and share at least 2 posts every month. We will cover Mumbai real estate in much more detail, and will also share upcoming properties across India in each real estate category: residential, commercial, and farmland.

Indian Real Estate is going through a challenging phase, and all players are facing liquidity crunch.

2009 will be a “Buyers Market”. Don’t let any seller tell you otherwise. If you have the cash, you are the king. As a buyer, you must use this fact for maximum negotiation.

As a seller, you must decide if you want to hold the property for later or sell now at a discount. For example, we are aware of sellers having “absolute prime” commercial land that used to have a line of buyers in Feb 2008, and today, there are no buyers even after advertising.

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NRI Investment Through ETFs or ADRs in Indian Real Estate

September 22, 2008 Indian Real Estate Advisor 2 Comments

Question by Mr. Narendran: We are Bangalore based real estate company and we are inviting foreign individual investors/institutes to invest in our residential projects across India. We are basically a marketing company and we have now stepped into our own property development in India. Can NRI’s invest through ETFs or ADRs? Kindly comment.

Answer: Thanks for asking your question. Please see the following posts for relevant inputs:

RBI Guidelines for FDI and ECB in Indian Real Estate

How can USA residents invest in India Real Estate through ETFs/ADRs?

So, can NRI’s invest through ETFs or ADRs? The simple answer is Yes in most cases. You should double check that your specific “residential projects” don’t have any regulation constraint from either Central Govt (RBI) or State Govt (I believe some state govts have added clauses to Central govt rules). Since you are already operating in India, you would have a good understanding on these aspects.

One more point from our experience is that if you are looking to attract FDI from NRIs for Real Estate Projects in the form of ETFs/ADRs, then you should tie-up with a company that has existing relationships with NRI investors, so that your offering gains more credibility.

You can contact us if you want help in connect with such companies. Feel free to ask any other question.

Thanks,
Shankar on behalf of India-Real-Estate.org

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