Affordable housing will be the backbone of the recovery for housing finance companies: report
âWhile pent-up demand has helped the sector float amid the pandemic, the resumption of economic activity will provide further impetus to revive the asset quality of long-term mortgage lending.
The housing segment will develop a lot more and lead the sector (housing finance companies) in the future, âthe agency said.
The current regime of the lowest interest rates, moderate prices and the government’s push towards the affordable housing segment are strengthening the feelings of buyers, he said.
Demand from home buyers is increasing, indicating potential growth for different categories of lenders, the agency said.
In addition, developers are returning to the market with new launches showing a positive trend in the first quarter of fiscal 22, mainly in the mid-range housing segment, he said.
Government measures such as reducing stamp duties, restructuring loans and injecting credit have instilled confidence in developers.
“We also expect the situation of normality or near-normality to be around the fourth quarter of fiscal 22 or the first quarter of fiscal 23 due to the rapidity of the vaccination campaigns even as the New vaccine approvals are awaited, which in turn would lead to maximum openness of economic activity, paving the way for a full recovery, âthe agency said.