Mumbai’s housing demand continues to grow
Mumbai- Growth is expected to continue to be very strong in home loan sector owing to the demand driven by the younger population.
Since 50 percent of the Indian population is below 25 years of age and average age of people borrowing loans is 37, in the next 5 to 10 years, there will be many more home buyers in the nation.
Individual segments demand is expected to remain very strong for a long period of time. High property prices will not have its effect on the demand for properties and thus home loans.
Real estate demand seems to be very strong in Mumbai compared to any other cities in India. It is believed that demand will not slump in the near future, said Keki Mistry, CEO of Housing Development Finance Corporation (HDFC), which is the largest mortgage lender of India.
While talking in an interview, Mistry said that HDFC will stay away from the reverse mortgage market.
Talking about the bank’s shift to individual loans, he said that individual loans has a spread of 1.96 percent while non-individual loans has a spread of 2.72 percent. There is tax benefit on individual loans but not for non-individual loans. Also there are other costs with respect to individual loans, though the effective return on equity is the same.
Cities in India, HDFC, High property prices, home loan, Housing Development Finance Corporation (HDFC), Indian population, Keki Mistry, mortgage lender, Mumbai, non-individual loans, return on equity, tax benefit
