• +91 9527 424 000 / +91 9850 524 000 / +91 9623 524 000
  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Choice Goodwill

Choice Group, Road No. 7, Vishrantwadi Airport Rd, Adarsh Colony, Tingre Nagar, Pune, 411032
Contact: +91 9527 424 000 / +91 9850 524 000 / +91 9623 524 000

NRI Investments In Housing Set To Almost Double To $11.5 Billion This Year From 2013 Level

NRI Investments In Housing Set To Almost Double To $11.5 Billion This Year From 2013 Level

Loan disbursals by Can Fin Homes, Indiabulls Housing Finance and LIC Housing Finance in the past quarter suggest that the impact of demonetization on the real estate industry wasn't as bad as feared. Although the rate of growth they posted was lower than in the past, given the uncertainty, it still appeared strong.

Can Fin Homes report a 28% increase in its loan book in the December quarter, while Indiabulls Housing Finance posted 30% growth and LIC Housing Finance a 15% increase? Mortgage finance companies reported strong numbers on the back of lower cost of funds, robust growth in loans and stable asset quality.
Banks have cut interest rates, which is a boon for housing finance companies as that reduced their cost of funds and led to higher margins.Also, while banks were busy managing cash post demonetization, HFCs focused on growing their portfolio.


"We did not see any impact of demonetization as the number of loans sanctioned in December is more than the same month the previous year," said Sunita Sharma, chief executive of LIC HFL. With the cash situation improving in the market, housing finance companies have seen, as per CIBIL, home loan inquiries going back to where they were before demonetization in October.

"Demonetisation is behind us, we are seeing inquiries coming back, and expect 18-20% growth by the end of financial year," said Kapil Wadhawan, chairman of DHFL.

The macro environment is extremely favorable for housing finance companies. Government incentives under the Pradhan Mantri Awas Yojana have also given an impetus to the sector. "Housing finance companies have a single product mindset, so they would continue to remain single product focused," said Gagan Banga, vice chairman of Indiabulls Housing Finance.

While there was initially a fear of deterioration in asset quality, post demonetization the local collection levels was not as bad as feared.Also, all HFCs maintained stable levels of non-performing loans during the quarter.

Housing Sector Biggest Beneficiary Of Demonetisati...
Housing Finance Companies Beat Note Ban Blues, Rep...

Related Posts

Recent Blogs

Loan disbursals by Can Fin Homes, Indiabulls Housing Finance and LIC Housing Finance in the past quarter suggest that the impact of demonetization on the real estate industry wasn't as bad as feared. ...
Home buyers may soon get cheaper credit or more loans. All they need to opt for is property insurance.National Housing Bank, the regulator for housing-finance companies, is working on a broad framewor...
Regardless of current economic conditions and other market variables, there will always be people who are not satisfied with just any kind of house, at any given point of time. As a result, the demand...
Land and real estate should be brought within the Goods and Services Tax (GST) regime and consumer durables should be taxed at the lowest slab to make the new indirect tax regime consumer friendly, De...
Earning money in a real estate venture is a complex task, and many people don’t have the talent for flipping houses. An option to this is a very risky activity to buy a property for a long time and re...

Flex


CHOICE GROUP a name well known for giving value for money to their esteemed customers. Quality and customer satisfaction have been the key to our success.

Flex

Contact Us


Address: Choice Group, Road No. 7, Vishrantwadi Airport Rd,
Adarsh Colony, Tingre Nagar,
Pune, 411032

Phone:  +91 9527 424 000

Email: sales@choicegoodwill.com

Like Us On Facebook