Shrugging off any slowdown in housing credit, the chief of the country's largest mortgage lender, Keki Mistry, VC & CEO of Housing Development Finance Corporation (HDFC) says demand for housing credit remains strong.
Real Estate Regulatory Act (RERA) and goods and services tax (GST) has got nothing to do with the slowdown at least till June because RERA and GST were introduced after July 1. There is plenty of demand from individuals who are looking to buy a house, he said.
Average loan size is about Rs 26 lakh, similar to last year level and the growth is coming from PAN India. Mumbai, Bengaluru, Pune, many other cities are doing very well, he added.
According to him, new project launches slowed down in July, August due to RERA. There are several projects which may be ready, but can’t be disbursed as not registered under RERA.
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RERA creates so much confidence for home buyers so disruptions in housing market right now will be very short-lived said Mistry.
This year's growth has been much higher in percentage terms than previous years, he further mentioned.
On demonetisation he said that it has done enormous benefit to India, we should not look only at the fact that 99 percent of the currency has come back.
Because of demonetisation, a lot of people have converted their physical cash into financial assets. They have collected all the cash, gone into the bank, deposited the money into the bank accounts, so the banks are flushed with liquidity and that liquidity is now finding its way into the stock markets, equity funds, debt markets and various financial assets, he said.
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