So far, India has about 8.7 lakh electric vehicles (EVs) across the country. And that number is slowly growing, thanks to increased environmental awareness, low maintenance costs and government subsidies. But the widespread use of electric vehicles is currently causing a stir in a seemingly unrelated real estate sector.
Many manufacturers are actively considering making special arrangements to accommodate EV owners. Of course, these conditions influence real estate prices and, therefore, buying decisions.
Want to know all about the impact of the demand for electric vehicles in the real estate sector? Go further.
The current state of electric vehicles
The Indian government has taken active steps to reduce automobile pollution by implementing some policies:
- Purchase subsidies for the purchase of electric vehicles under FAME programs
- Monetary incentives to develop strong charging infrastructure across the country
- Tax incentives to promote the electric vehicle industry
- Together, these policies have not only made it easier to own an electric vehicle but also made it profitable for all relevant sectors to support them.
How EV adoption is impacting residential real estate buying trends
First, increased EV adoption means a simultaneous increase in demand for electric charging systems (or EV-enabled real estate). Developers will need to provide properties with accessible charging and service facilities for electric vehicles.
Builders also expect home ownership trends to change slightly. They expect positive real estate developments in markets where EV companies have a strong presence. Why? due to the crowding out effect. More EV competitors, more facility options for EV owners, and better service too. Undoubtedly, with all other amenities intact, EV owners will prefer to buy property in these areas, even if it requires obtaining a home loan to cover ownership costs.
Impact on property prices
Today, real estate developers are working with EV charging companies to install EV stations at their businesses. However, this is an expensive affair in itself. This is why. A functional residential EV charging station requires higher power capacity, a stable Internet connection to run the IoT-based charging system, etc., all of which have high installation costs. The real estate prices of the places that comply with these systems are of course also high.
Developers charge a premium of between 1 and 5% for connected electric vehicle charging services. Of course, this takes the cost of ownership up several notches. But if you’re an EV owner considering residential real estate, there’s no reason to worry about real estate costs because a home loan can easily fix that. The best part? These days, most lenders also offer attractive home loan interest rates!
Electric vehicles will have a greater impact on property prices in areas where the adoption of electric vehicles is high. This includes metropolitan cities like Delhi, Bangalore, etc.
The good news is that you can easily get a home loan in Bangalore and other metropolitan cities with Tata Capital. We offer no-hassle loans and even let you choose the length of your loan to make repayments even easier.