"I feel that demand will pick up and the growth rates should pick up for the sector as a whole, not only for our company," said Vinay Sah, CEO of LIC Housing Finance.
Vinay Sah, Managing Director and CEO of LIC Housing Finance, shared his views and outlook on the housing sector.
"There is some revival of the sector. The growth rates are improving though current year right from the start we have been having growth rates for the retail business around 6-8 percent, till Q3 also it was around the same level, going ahead we are expecting good business in Q4. Traditionally, Q4 is high volume sector, so I see very good growth in Q4. We should end up the year with a growth rate of around 14-15 percent," Sah told CNBC-TV18.
"For affordable housing – for our company – we did about 21,000 loans last year, current year till February we have already done about 31,000 loans which constitutes about 20 percent of our total sales. The government has extended the subsidy availability period till March 2020, going ahead the demand is there, affordable is contributing a lot, the sales and other things have not taken a hit. The good thing is that enough of inventory also is there, especially in tier II and tier III cities and for us, most of the sales have happened in tier II and tier III cities as far as affordable housing goes," he added.
Talking about the general home demand, Sah said, "If we see it compare it with the last year's, we have been experiencing a growth rate of about 7-8 percent. Yes, I would say if all throughout the year, at no point of time we experience a very high growth rate as far as the retail sector goes. Only it is in Q4 - January-February included - that we have seen some sort of a revival in the demand and going ahead also, I feel that the demand will pick up and the growth rates should pick up for the sector as a whole, not only for our company."