What Are the Different Types of Real Estate Developers in India?

Updated on: 14 Dec 2021 // 21 min read // Home Loans
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Housing in India is presently in a crisis with the land prices increasing at a constant rate. There are space constraints in bigger cities and limited availability of proper housing facilities in the smaller towns. For home buyers, the situation presents a daunting picture of an overwhelming task on hand – finding the right home and the right builder. Whether you are planning to buy an independent villa (or have it built) or want to move into an apartment, the struggle is more or less the same as there is still the need to look for the most appropriate location as well as a builder who will understand your requirements.

Let’s face it, buying your home can be somewhat stressful, even more, if you are buying your first home as you are about to make the most significant financial decision of your life as for most people, the only viable option to purchase a home is with a Home Loan. In this regard, having all the right information about the Types of Home Loan Available in India can be your superpower.

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Types of Home Loans in India

Even before you look for your perfect home, it is essential to take a careful look at your finances and your financing options. Buying a home is an important decision, and in most cases, you will want to depend on home financing options or simply put, home loans. Here are some common types of Home Loans available in India to help you move ahead with your decision.

  • Land-purchase loan:

The land purchase loan is offered by banks as well as NBFCs (Non-Banking Financial Companies) to purchase a plot of land. Usually, the loan is available for up to 80% of the cost of the land.

  • Home-purchase loan:

This type of Home Loan in India is most common. It is offered to purchase an already constructed or in-construction residential property. The loan amount covers up to 80% of the value of the property.

  • Home-construction loan:

For home buyers who already own land or plot, the option to take home construction loan exists. There are various aspects here to look at, such as a rough estimate of the construction costs and when was the land purchased.

  • Home-improvement loans:

These loans are available to those who would like to expand or renovate their already existing house or upgrade the home.

  • NRI Home Loans:

As the name suggests, NRI Home Loans are specialised Home Loans that help the non-resident Indians to buy a residential property in India. This type of loan usually requires more exhaustive paperwork.

Start with the Type of Home You Are Looking for

When you have decided to buy yourself a new home, the first thing that you will have to choose is the type of home you would want. If this is your first home, you will have the vision of your dream home in your mind already but now comes the practicality of your dream – whether you are financially capable of the investment? Do you live in a big or small city?

Search for the Best Home Builder for you

Once you have decided on the type of home you would want, the next thing you will need to look out for is the most appropriate home builder who will help you realise your dreams. Typically, there are broadly two types of real estate developers/ home builders:

1. Independent Home Builders

The independent home builders are those that you can hire on contract to build your home for you. In this regard, you will need to have land already, and then according to your home requirement, you can reach out to an established and reputed independent home builder.

There are various Home Loan offers available for the purchase of land and consider your independent home construction. This option is suitable for those home buyers or investors who are on a high budget and are quite keen on a customised home that they can build up from the scratch to match their dreams. While many people look for independent home builders, the masses are in search of companies that can provide them more financially accessible options.

2. Homebuilder Company

A home builder company is your answer if you are looking for a home that is built on some standards such as in gated communities or residential apartment buildings. When you choose to deal with a home builder company, you do not have to worry about purchasing the land as the builder already has the land that he has developed into residential units. In this regard, you can approach for a Home Loan for the apartment or constructed villa you would like to own. Purchasing your home, whether you are a first-time home buyer or not, requires a lot of effort from your end to gather the necessary information. Spend time analysing your options, ask around and choose wisely!

Also Read: Can the Location of Your Home Lead to Home Loan Rejection?

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