Budget apartments find big market in Kerala

KOCHI: Budget homes are the need of the hour. Also demand for cost-effective houses are on the rise, says a recent study. The demand for affordable housing is increasing in the state, according to a study carried out by Swapnakoodu.com, a Malayalam web portal on real estate and architecture.The study specifically points out that apartments below Rs 25 lakh are on high demand in Kerala.The study assesses that the trend could be attributed to the income of Keralites. “The majority of people earn less than Rs 50,000 a month. Based on the current interest rate of 10.5 to 11 per cent, a person in this income bracket can avail a maximum of Rs 20 lakh as home loan for a period of 20 years. The banks and home loan companies usually limit the loan amount to less than 80 per cent of the property value, which means a house or apartment costing Rs 25 lakh will get a home loan of Rs 20 lakh only,” the study observes.“With the current real estate prices, a family with a monthly income of Rs 50,000 would not be able to afford a new apartment in major cities like Kochi, Thiruvananthapuram, Kozhikode and Thrissur. Also, apartments in these cities cost above Rs 25 lakh,” said P R Aneesh,CEO,Swapnakoodu.com. “If the builders can roll out apartments costing less than Rs 25 lakh, there will be a huge demand,” he added.One of the first Malayalam web portals on real estate and architecture, Swapnakoodu provides a detailed picture on celebrity homes, architect’s choice and heritage homes.Latest trends in real estate, house making, interior and exterior designing, vaastu column and online property mart are other major features of the portal.Individuals who want to sell their property can list the property free of cost on the portal.AFFORDABILITY & BANK LOANS* The majority of people earn less than Rs 50,000 a month. Based on the current interest rate of 10.5 to 11 per cent, a person in this income bracket can avail a maximum of Rs 20 lakh as home loan for a period of 20 years* The banks and home loan companies usually limit the loan amount to less than 80 per cent of the property value* With the current real estate prices, a family with a monthly income of Rs 50,000 would not be able to afford a new apartment in major cities.