Demand for new apartments in Kanpur is on the rise. A number of initiatives taken by the government, along with changing structural dynamics of the economy are giving this rise impetus. What is driving Kanpur housing residential demand?
Demand for new apartments in Kanpur is on the rise. A number of initiatives taken by the government, along with changing structural dynamics of the economy are giving this rise impetus. The covid-19 induced pandemic and the consequential lockdown across the nation has also provided a strong driver towards enhanced residential demand for flats in Kanpur.
The Pradhan Mantri Awas Yojana (PMAY) scheme has been focused on improving affordability for home buyers. The scheme has provided for first-time homebuyers of homes below a certain price being entitled to subsidies from the government. Therefore, the cost of homeownership is reduced, enhancing demand for residential real estate, especially flats in Kanpur for sale. Along with the PMAY scheme is the Credit Linked Subsidy Scheme (CLSS). Under this scheme, homebuyers can avail of an up-front interest subsidy on their home loan, which they may avail of for the purchase of their apartments. Under this scheme, a purchaser who intends to finance the purchase of residential property through a home loan will be entitled to a reduced interest rate and an up-front benefit of up to Rs 240,000 on their purchase. These factors as introduced by the government provide a string impetus on the demand side for flats in Kanpur and the rest of India.
Structurally and across the economy, there has been a shift towards home ownership, with Kanpur being one of the cities driving this change. Lower uncertainty with respect to home deliveries thanks to the introduction of the Real Estate (Regulation and Development) Act, 2016, simpler taxation as a consequence of the introduction of the Goods and Services Tax (GST) and greater accountability has ensured that home buyers’ aspirations are preserved and fly-by-night operators no longer work in the real estate sector. Simultaneously, interest rates have reduced substantially as a result of interventions made by the Reserve Bank of India (RBI). The result is that equated monthly instalments (EMIs) on home loans have reduced for end users, enhancing affordability. Therefore, the same buyer can now make a purchase of a home in an iconic tower in Kanpur, because her ability to secure a larger loan (as a consequence of a reduced interest burden and therefore EMI) is higher than it previously was. This has allowed for many more buyers to become active participants in a market they previously were unable to participate in.
Finally, due to the onset of the covid-19 pandemic and the consequential lockdown across the nation, people have been spending a lot more time in the confines of their home. People have gone from spending limited time in their home, to being forced to spend days, nights and weekends at home, and work from home too. The practical aspects of a home are now more important than ever, and people place far more value in the space they inhabit than they perhaps ever did. Renters are therefore choosing to upgrade to home ownership, giving them financial and emotional security, and amenity spaces in buildings are more important than ever. With people today having experienced access to entertainment, social infrastructure, and lifestyle change dramatically, stop almost overnight, living in developments such as Emerald Garden Kanpur which is complete with all the amenities one could desire, is a welcome reprieve to uncertainty such as what the world is experiencing today. This important change is also a strong demand driver for housing demand in Kanpur