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Impact Of Increasing Electric Vehicles Demand On Real Estate

Impact Of Increasing Electric Vehicles Demand On Real Estate

So far, India has about 8.7 lakh electric vehicles (EV) all over the country. And that number is slowly increasing, thanks to greater environmental consciousness, low maintenance costs and government subsidies. But EVs’ widespread usage is currently making waves in a seemingly unrelated sector-real estate.

Many builders are actively considering making special arrangements to accommodate electric vehicle owners. Naturally, these provisions impact the property prices and, in turn, buying decisions too.

Want to know all about the impact of electric vehicles demand on real estate? Let’s dig right in.

The current state of electric vehicles

The Indian Government has taken active steps to curb vehicle pollution by rolling out some policies:

  • Purchase subsidies for buying EVs under the FAME schemes
  • Monetary incentives to develop a robust charging infrastructure around the country
  • Fiscal incentives to promote the EV industry

Together these policies have not only made it easier to own an electric vehicle, but they’ve also made it profitable for all the allied sectors to support them.

Additional Read: Is Electric Car Better than Petrol Car?

How EV adoption affects residential real estate buying trends

First off, increasing EV adoption means a concurrent rise in electric charging system demand (or EV friendly real-estate). Naturally, realty developers will have to provide properties with accessible EV charging and vehicular maintenance facilities.

Builders also expect property ownership trends to change slightly. They expect a positive shift in property ownership in markets where EV companies have a strong presence. Why? Because of the agglomeration effect. More EV competitors, greater choice of facilities for EV owners, and better service too. No doubt, all other amenities intact, EV owners will prefer buying properties in these areas, even if it requires taking a home loan to cover the property costs.

Impact on property prices

Now, real estate developers are joining hands with EV charging companies to install EV stations in their societies. However, it is a costly affair in itself. Here’s why. A functional residential EV charging station requires having a higher power supply capacity, a stable internet connection to manage the IoT-based charging system, etc., all of which have high installation costs. Naturally, the property prices for places that come attached with these systems are high as well.

In fact, developers charge a premium of anywhere between 1-5% for attached EV charging services. Of course, this takes the cost of the property several notches higher. But if you’re an EV owner eyeing a residential property, there’s no reason to worry about property costs because a housing loan can easily take care of them. The best part? These days most lenders offer attractive home loan interest rates too!

Additional Read: Electric Cars vs Petrol Cars – Pros & Cons

Final word

It’s evident EV vehicles will have a greater impact on real estate prices in areas where EV adoption is high. This includes metro cities like Delhi, Bangalore, etc.

The good news is you can easily get a home loan in Bangalore and other metro cities with Tata Capital. We offer loans without the additional hassles and even allow you to select your loan tenure to make repayments even easier. Can’t select the right loan plan? Use our home loan EMI calculator to help you out.

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