Tribhuwan Adhikari, CEO & MD of LIC Housing Finance, has said that while a lot of demand is coming from Tier I and II cities, construction is at a lower pace today. “While inflation might be checked by September, the global climate is recessionary," he added.
The company will adopt a cautious approach when it comes to funding housing projects, given the volatility in the sector, he said.
Speaking at the National Real Estate Development Council’s (NAREDCO) 25th Foundation Day conference in Hyderabad on August 26, Adhikari emphasised the value of risk management by drawing attention to the volatility and inconsistent results seen in the housing financing sector.
Adhikari said that a cautious approach is aimed at avoiding unnecessary risks associated with certain housing projects, and for ensuring a more stable and sustainable path forward. He hinted at the possibility of a well-rounded approach to project selection for financing.
The event also saw the launch of property consultant Knight Frank's report, India Real Estate-Vision 2047, which projected that by 2047, the size of India’s economy will range between $33 trillion and $40 trillion.
However, the government and independent experts pointed out that while the need for infrastructural push is crucial, affordable real estate will contribute majorly to India's climbing GDP.
They highlighted that infrastructure remains inaccessible for a majority of suburbs across metro cities. They stressed the need for housing to remain affordable in order to meet India's goal of a $5 trillion economy.
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