Month: June 2025

EMIs or equated monthly instalments are fixed monthly payouts that go towards repaying your home loan. The payment comprises two components – the principal and the interest – spanning the entire loan period. Comprehending the terms and conditions of the EMI will help you take stock of the repayment situation and manage your budget accordingly.

The interest rate on a home loan is a critical factor in calculating the overall cost of the loan. It is the percentage charged on the principal amount borrowed, which denotes the borrowing cost. The EMI amount rises and falls with fluctuations in the rate of interest in a home loan. The interest rate could be fixed or floating. The former doesn’t change throughout the loan tenure, while a floating rate is linked to an external benchmark rate, swaying in sync with RBI’s changes in repo rate.

Principal & interest payment through EMIs

Each EMI repays a portion of the amount borrowed (the principal), plus the interest due on the outstanding principal. The ratio of repayment of the principal and the interest changes during the tenure. The initial EMIs account more for paying the interest and less for repaying the principal amount. EMIs at the later stages are more focused in repayment of the principal amount.

Factors affecting EMI on home loan:

• Interest rate: A lower interest rate translates into smaller monthly payouts, whereas a higher rate results in larger EMIs.
• Duration of loan: When the loan tenure is shorter, the EMI amount increases, but the overall interest paid goes down. Conversely, when you borrow for a longer tenure, your EMI goes down, but you end up paying more overall interest.
• Amount of borrowing: A higher amount of borrowing will entail a larger EMI, and a lower amount a lesser monthly payout.
• Your credit score: If you have a higher credit score, you can secure a lower rate of interest from the lender, which slashes your EMI amount.

You need to remember that the interest rate for a home loan is compounded interest, as opposed to simple interest. This means, you will not be paying interest on the principal amount alone, but on the principal amount together with the interest accrued. This interest rate will determine your total cost of borrowing.

What is the formula to calculate home loan interest rate?

The manual formula is as follows:

Interest = (Principal Amount × Rate of Interest × Time) / 100

What are the advantages of calculating home loan EMIs?

• Proper financial planning: When you know your EMI amount and duration of your loan by prior calculation, it enables you to manage your finances better and make sure you can afford the EMI with your present income. You can decide on the affordability of a particular home accordingly, averting anxiety.
• Compare loan offers: By being able to calculate your EMI on your own using the manual formula, you can make a comparative analysis of loan offers from a clutch of lenders. You can figure out the total repayment amount and settle for the most cost-effective option that suits your budget.
• Save on interest: When you account for various EMI options, you can figure out the impact of different interest rates on your repayment of loan. By comparing EMIs for varying interest rates, you can calculate long-term interest savings.
• Planning prepayment: Deducing EMIs on your own helps in planning the prepayment of your house loan. When you can fathom the repayment schedule, it allows you to figure out when’s the right time to make additional payments to reduce the tenure. This helps in saving interest and can make you a debt-free home owner.

Driven by the credo “less is more”, minimalist living is fast becoming a rage with today’s generation. Defined by clean lines, uncluttered, monochromatic simplicity, more and more homes are opting for a resolved minimalist décor, which is painstakingly achieved. In reality, a lot more effort goes into creating a minimalist design than meets the eye.

Benefits of a minimalist home:

• Eliminates clutter
• Less stressful
• More appealing
• Easier to clean
• Encourages investing in quality over quantity

Characteristics of a minimalist home

• Minimal furniture: A minimalist home would only have a few essential pieces of furniture. For instance, the living room might have just a couch, a couple of chairs and a coffee table. It could also contain a TV screen and maybe a corner standing lamp. Likewise, the bedroom could have a basic bed or just a mattress and maybe a bookshelf.
• Clear surfaces: There aren’t too many things cluttering surfaces, nor untidy stacks of books or other items. Instead, flat surfaces are generally kept clear, except maybe a few decoration pieces here and there.
• Accent decoration: Just to break the monotony of clear surfaces and sparse walls, there could perhaps be a single vase with some flowers on the coffee table, a family photo on a clear desk or a tasteful wall-hanging.
• Better, not more: A minimalist home would rather have a few really nice things that are used often, instead of a jungle of mundane furniture pieces, half of which are never used.

Essential design tips for a minimalist home:

• One room at a time: If you are not relocating, don’t try to do your entire house at once. Try to focus on one room at a time and concentrate your entire bandwidth on doing that room only. Feed on that inspiration to simplify the other rooms, one by one.
• Begin with decluttering: The living room in a minimalist home doesn’t necessarily mean absolutely sparse, but devoid of unnecessary items. So, throw away, donate or recycle anything you don’t really need.
• Stick to a neutral colour palette: Neutral shades like beiges, whites, greys and soft pastels are the cornerstone of minimalism. Use of these colours creates a sense of spaciousness and makes the room look brighter. Neutral shades help natural light bounce around the room, exuding an open, outdoor-like feel.
• Make the most of natural light: Make sure your windows are letting in enough natural light. Letting daylight fill up your living room accentuates the minimalist trend. Avoid heavy curtains or blinds and use light, airy fabrics and window treatments that offer privacy without blocking out natural light.
• Not too much furniture: The core of a minimalist living room is simplicity. When it comes to choosing furniture pieces, less is always more. A classy coffee table or a creatively designed couch can be the anchor without overwhelming the living room.
• Clear floors: Barring the bare essential pieces of furniture, the floor should be kept completely clear. Nothing should be stacked on the floor. It spoils the minimalist look.
• Invest in multi-functional furniture: In small living rooms in particular, multifunctional furniture is the best option. So, find a coffee table that doubles as a storage unit or a sofa bed. In this way, you cut the clutter and maximize functionality.
• Store out of sight: Whatever you need to store should be stashed away out of sight in drawers and cabinets. You can keep some of your books, music and movie collection on the bookshelves, but don’t overwhelm the racks.
• Choose compact lighting: Go for sleek and compact light designs, high on functionality. For instance, floor lamps with slender stands or wall sconces which free up floor space. Use simple fixtures that blend seamlessly with your overall décor.

The real estate market in India continues to be bullish, finishing calendar 2024 on a strong note, registering record leasing and sales as well as displaying a growing appetite for new launches. 2025 is expected to sustain the momentum and grow the market further, driven by technology, forward-looking government policies and shifting lifestyle patterns.

Equity investments in the realty sector last year topped $10 billion, buoyed by robust inflows in commercial spaces and a strong momentum in the residential sector. This trend is expected to continue. All stakeholders, including homebuyers, investors and industry professionals, should keep themselves abreast with this ever-evolving market to get the best deal.

Key trends to look out for in 2025

Housing market buoyed by high demand:

The traction in the residential segment has never been stronger. In the period between January and September last year, over 229,900 units were sold across the country’s seven top cities, registering a significant 17% jump from 2023. The trend of higher demand for mid- and high-end segments is expected to continue through 2025, with the luxury segment showing faster growth than affordable housing.

Popular today:

• Integrated townships with modern amenities
• Smart homes with advanced features like AI-driven security, automated lighting, energy-saving devices, etc.
• Bigger homes for multigenerational living and work from home

Robust growth in office segment:

Ongoing turmoil and uncertainties around the world has not scalded the Indian economy as much. This is reflected in the sustained optimism in India’s office space market, with gross leasing between January and September last year touching a record 53.4 million sq. ft. The IT, engineering and manufacturing sectors have been driving growth in the commercial segment, while India has positioned itself as a major GCC (global capability centres) hub. In 2024, the GCC market grew at a CAGR of over 11%, considerably boosting the office segment.

Popular today:

• High-tech, sustainable Grade A office space
• Flexible office spaces with ‘core plus flex’ model
• Return to work boosting office space demand

Boost for retail & hospitality sectors:

Ever-increasing consumer spending, which touched $1.29 trillion in 2024, continues to power India’s retail segment. Leasing activity is slated to touch 7 million sq. ft. by this yearend, riding on high-growth segments like fashion, food and entertainment. Experiential retail is set to become the caller tune of this sector.

On the ground:

• Exponential growth in domestic travel fueling hospitality growth
• Family entertainment zones attracting footfalls
• Burgeoning disposable income boosting retail

 

Construction sector thrives on infrastructure explosion:

Powered by the tailwinds of government spending, India’s infrastructure sector has grown phenomenally from around Rs 5 lakh crore in 2021-22 to Rs 11 lakh crore-plus in 2024-25. With roads, railways and aviation at its core, this infrastructure explosion is transforming Indian cities and industry outlook.

On the ground:

• National highway network grew 1.6 times
• Over 1300 railway stations got a facelift
• 84 airports made operational in last decade

 

Opportunity to invest in new domains:

With the emergence of new asset classes like data centres, shared- and assisted-living spaces and more, a whole new world of investment opportunities has opened up, powered by the new consumer with shifting demographics.

On the ground:

• Data centre capacity set to spike 66% over the next 2 years
• Improved regulatory mechanism boosting sector transparency
• India’s currency as global realty hotspot on the rise