MDs of home financiers look at profiles of loan seekers returning to pre-COVID patterns
D. of the Housing Finance Branch of Sundaram Finance. Lakshminarayan, MD, d. Lakshminarayanan, MD, Lakshminarayanan said that the number of home builders is now increasing compared to six months ago.
“Construction activity is a very important parameter [for us to follow], “He said.” The number of new launches in recent months and progress in the construction of existing projects indicate that confidence is coming back into the market. “
Although the epidemic suppressed new home project launches in the first half of the current financial year, a ‘lot’ of unsold inventory was being absorbed due to pent-up demand, Mr. Lakshminarayan said. “For the first time in the last two years, the number of new launches was less than the absorbed units in the top eight cities in India.”
Although his view is that there will be a return to the ‘buying’ pattern in residential projects, he said the industry will have to wait and see how different the new demand will be. “Only time will tell if there will be a change in location (non-urban centers) among real estate buyers and if the size of the units will vary.”
He told that Tier 2 and 3 cities have been doing well in the last six months because the cities have satellite areas. “In small towns, we have found that there is no debate between prospects on the ‘buy versus rent’ assessment, which is usually the case in the city. There, it is always a purchase. Self-construction and purchase of plots increases. And it is encouraging. The rural sector will definitely develop. As a strategy, we believe that the potential to grow in small cities like Salem, Erode, Namakkal, Guntur, Vijayawada, Kudapa, Belgaum, Mangalore and Mysore is. “
“Affordable housing was the first to move out of the blocks after the lockdown and the space is expanding into areas beyond the metros. Encouragingly, the merchant and non-salaried segments are leading this charge. “
His first year since he took over as an MD at a housing finance firm now looks at the context of the epidemic, he said, “I had a set of 6-7 things that I planned to take when I Was about to handle it. MD since 1 April last year. I did none of them and did not revisit any during the year. It was not going to be a year when business was growing by 15–20%. The quality of the portfolio assumed great importance and disbursement took a back seat in the initial phase. The focus on development was to be dealt with later. “
Asking whether there were signs of easing the lockdown after the demand improved, he said, “Activity slowed down in August and September and has improved significantly since then. At that stage, we wanted to see if It is just the demand and the initial excitement that is leading to the business. However, in the last few months, we have almost come to pre-COVID levels [ie, comparable to Dec 2019] With reference to Vol. The builders who are making inquiries and booking flats are supporting it. The profile of people coming for home loans is also coming back which was at around 55% level with itself earlier. “
Mr. Lakshminarayana is also looking at select rents, a sign of demand for homes and home loans. “We are looking for select front-line employees in markets that have the potential to grow. We expect fares in the pocket of AP and TN, including places like Kanchipuram and Vellore. “
In 2020-21, the company raised ₹ 4,400 crore, but unlike a normal year when fund raising was a good size for growth, fund raising was also done this year to re-add the profile of liabilities. , ‘Providing buffers to liquidity requirements as well as rates on offer’. In the coming year, SHF plans to raise funds to increase disbursements, which Mr. Lakshminarayanan said he expects will be much higher than in 2020-21.
On the outlook for the home finance sector, he said, “Housing affordability has improved, prices have improved significantly, interest rates are at an all-time low, soap proposals have come from builders and the government. In recent history For the first time, all of these are happening at the same time. Demand is outpaced by various factors and supplies are there to match it. The signs are quite encouraging. “
