Equities & Debts on Upswing and Realty on Downswing
With the stock markets improving after the elections and post Narendra Modi entry in government, there is huge difference seen in markets. Equity and debt markets have been rising well giving good profits to investors in stock markets where as due to high prices of real estate there has been a preety observant slow down in loan disbursements.
There were some major changes seen when data of year 2013 and 2014 was compared.
- The outstanding on housing loan seen last year between April 2013-September 2013 was Rs.45, 600 crores, where as the outstanding seen this year between April 2014-September 2014 is Rs.39, 600.
- We can see a major difference in downswing of the amounts
- The other observation where the growth on home loan outstanding was 20 percent last year is just 14.8 percent this year. We can see a major difference of 6 percent slow down this year.
- An observation also showed that unsold flats this year are much more as compared to last year.
It is also seen that as compared to last year the prices for real-estate in all the major metro cities have either remained the same or have come down slightly. With this trend, the amount of houses being sold to consumer to High net worth individuals have also lessened. One of the major reasons behind the same is slow down in loan disbursements. This is definitely affecting the business for housing companies and private sector banks. More than that, there was a data in public sector banks that reflected in RBI that Public sector banks are affected most because of this.
This slowdown is definitely affecting lot of companies like Knight Frank, India Bulls, etc.HDFC still says that they are doing decent well but slow down has affected in atleast some way even to them.All the financers are greatly looked to be affected by this slowdown. Predication also states that slow down may continue for more few months or could also be for a year especially for the high net worth clients (Net worth above 75Lakhs) depending on market conditions.
Equities & Debts, high net worth individuals, high net worth individuals (HNIs), loan disbursements, Realty News
