Encouraging Women Towards Real Estate Investment
Owing to record drop in interest rate and reduction in stamp duty and circle rates in select cities, demand for residential real estate has gone up significantly in recent months. This has also led to a rise in women homebuyers who play a vital role in decision-making during the home buying process.
According to a recent survey by real estate consultant ANAROCK, most Indian women now prefer investment in real estate over investment in gold, stocks or even fixed deposits. The survey notes that women’s preference for real estate has risen post Covid-19 – from 57 per cent votes in the pre-pandemic survey to 62 per cent in the current edition.
In order to encourage more women to become property owners, most of the financial institutions have differential pricing, which is lower for women home buyers. Many banks and housing finance companies (HFCs), including State Bank of India (SBI) offer a concession of 5 basis points where women are the first applicants. On International Women’s Day, the State Bank of India (SBI) offered further reduction of interest on home loan rates to women borrowers. “On Women’s Day, we make it special with an additional concession of 5 bps* to women borrowers and interest starting at 6.70%* onwards,” SBI said in a tweet.
In the current times, various government policies too support women homeownership. For instance, to avail homes under the government’s flagship scheme Pradhan Mantri Awas Yojna (PMAY), homes have to be mandatorily registered either in a woman’s name or with women as co-owners.
The Maharashtra government too in their budget for 2021-22, presented on International Women’s Day, offered one per cent concession in stamp duty if property is transferred or registration of sale deed is in a woman’s name.