HDFC officials said this was the first time that low interest rates on home loans were combining with low property prices.

HDFC officials said the prevailing rates in the housing finance sector are the lowest the industry has witnessed in the last 18 years, while property prices are at a three-year low.

This unique combination coupled with the tax breaks in the budget for loans upto Rs 75,000 has again spurred buying interest in the real estate market.

According to HDFC officials, there has been an increase in enquiries in the last few months ``not only with HDFC, but also with the builders''.

While industry sources ruled out any further reduction in rates, they said value additions and services would become the battle turf. ``we are notmerely in the business of providing money, but in providing housing solutions'', an HDFC official said.