Demand For Affordable Housing In Kerala Set To Rise
'God's own country' Kerala is attracting home buyers like never before. Although tourism has been the mainstay of the stay for the last one decade, IT corridors and metro networks in its various cities have acted a shot in the arm for the state real estate scenario, thus, amplifying the demand for affordable apartments in Kerala.
As the country has witnessed a sharp decline in the housing loan interest rates, this will increase the demand for affordable housing in the state as well. The current interest rates vary between 8.4 per cent and 8.6 per cent, a little down from the previous 9.2 per cent. With the fall in the interest rate, the demand for affordable housing in the state has witnessed a surge.
"We feel it could fall to about eight per cent in the coming days," said Dr Najeeb Zackeria, secretary general, Kerala unit of Confederation of Real Estate Developers Association of India (CREDAI) told the Economic Times.
The fall in interest rates will give a leg-up to the state's diversity, thus, attracting people from various industries, cultures, ages, and income groups, thereby strengthening the liveability quotient of the 'land of spices'.
Moreover, such initiatives to promote affordable housing will help buyers find quality living in proximity to their workplace. This will lower the state's consumption of non-renewable natural resources, such as petrol or diesel, to commute distances and resultantly making the state's air cleaner.
But there are a few issues that need to be sorted to make Kerala a world-class state. As land is a state subject, currently, the stamp duty and registration charges in the state are eight per cent and two per cent respectively. A little higher when compared to the national average of three per cent (stamp duty) and one per cent (registration charges), the state CREDAI officials asked the government to reduce the stamp duty, registration charges and implement a single window clearance system to boost the real estate market.