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IndustryLatest Stories

Hiranandani Acquires Land in Andheri, Mumbai

Representative image Realty developer House of Hiranandani has secured an acre of land in Mumbai’s Andheri East as part of its strategy to enhance its commercial real estate presence in the city’s evolving office market. The company plans to invest over Rs 500 crore in developing a premium commercial tower on this site. The project is projected to offer around 400,000 sq ft of leasable space, with construction set to commence within three to six months, pending regulatory approvals. This development aims to meet the increasing demand for Grade A office spaces in Mumbai’s western suburbs, fueled by strong occupier…

Housing FinanceLatest Stories

Banks Boost Loans to Wealthy for Mortgage Growth

MUMBAI: To spark mortgage growth, banks are focusing on the luxury housing market, designing tailored loan products to cater to increasing demand for high-end properties in major cities and their affluent suburbs. “The premium segment continues to thrive, and that is where the growth lies,” stated Manu Singh, head of housing finance at Kotak Mahindra Bank. “Buyers are seeking larger, luxury homes, often looking for second or third residences in Alibaug or Gurgaon. We view home loans as relationship products; our goal is to be a trusted banking partner for the affluent throughout this journey.” In Mumbai and Delhi, luxury…

Housing FinanceLatest Stories

Banks Expand Home Loan Spreads to Protect Margins

MUMBAI: Banks are raising their spreads above home loan rates to safeguard their margins. SBI and Union Bank of India have increased their mortgage spreads as reference rates decrease. With the repo rate already reduced by 100 basis points this year, further cuts could be on the horizon. Unlike previously, when lower rates primarily benefited new borrowers while existing ones paid higher, the current environment sees new borrowers facing increased costs, despite banks being required by RBI regulations to pass on rate cuts to existing customers. This discrepancy arises from persistent funding costs. Reducing deposit rates remains challenging, particularly for…

Housing FinanceLatest Stories

SBI Raises Home Loan Rates by 25 Basis Points: A Signal?

MUMBAI: India’s largest mortgage lender, State Bank of India (SBI), has raised home loan rates by 25 basis points for new borrowers, indicating a potential shift towards higher interest rates in the housing market. This increase mainly impacts applicants with lower credit scores, as SBI adjusts the upper band of its loan rates. Union Bank of India has also raised its rates, and other public sector lenders may follow. As of late July, SBI’s mortgage rates were between 7.5% and 8.45%. Post-adjustment, new borrowers will face rates between 7.5% and 8.70%. Union Bank of India has upped its rate to…