HDFC Vice-Chairman and CEO projects ‘steady growth’ in housing finance segment for many years
During the course of a 
recent interview with Business Line, Keki Mistry – Vice-Chairman and CEO of home finance market leader HDFC – said that demand for retail loans remained steady in 2013-14; and also projected ‘steady’ growth’ for the housing finance segment for several years, largely because of macro economic and demographic factors.
Noting that there has hardly been any notable effect on the housing finance segment over the last five years, Mistry said that the demand from middle-class consumers has – by and large – been the same, regardless of whether the economic growth was 8 percent or less than 5 percent.
Mistry said that the key reason why HDFC’s middle-class consumers has remained unaffected by the country’s economic scenario is that most of the consumers in the mentioned segment are salaried employees who will continue to show a fairly strong demand for housing finance, provided that there is income growth and stability of jobs.
With regard to the projections of a steady and strong demand for housing finance in the coming years, Mistry said that mortgages in India comprise barely 8 percent of GDP, which is comparatively much lower than mortgages in the developed countries.
Furthermore, drawing attention to the fact that 60 percent of India’s population is below 30 years of age, Mistry said these below-30 populace will require housing in the next five or ten years.
Source – The Hindu Business Line
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