A fresh lease of life for real estate?

The Reserve Bank has taken all the right steps to attract home buyers and encourage housing finance companies. A couple of other things can complete the suite

Real estate developers have started announcing the return of the buyers to the market, setting the stage for an increase in home prices. In a seemingly related development, despite a fall in household income, this calendar year, Kolkata has emerged as the most affordable market for buying a property, compared with six other major cities across India — Hyderabad, Pune, Chennai, Bengaluru, Delhi-NCR and Mumbai — according the JLL Home Purchase Affordability Index.

A sharp drop in home loan rates is the most potent contributor to this. Barring the affordable housing segment, most mortgage lenders are offering loans at below 7