Affordable Housing Requires Further Stimulus: Rashesh Shah
FICCI President Rashesh Shah emphasized that housing is a vital sector in achieving double-digit growth. He was speaking on the release function of the report – 'State of the LowIncome Housing Finance Market 2018' – in New Delhi on 30 May 2018. He also said that there is a demandsupply gap of 20 million in the housing sector. 'It will take around 810 years to fill the demand-supply gap in the sector,' he added.
Shah called for a further stimulus for the housing sector by increasing the loan tenure for individuals under the EWS (economically weaker section) category to 20 to 30 years as these are asset-backed loans. At present, the loan tenure is 5 to 10 years for individuals in this category.
He said that the distinction between the housing finance companies and affordable housing finance companies is blurring with the passage of time and lauded the progress made during the past three years, 'I expect more growth in the coming 5 to 6 years for the sector,' Shah said.
Ashish Karamchandani, Senior Adviser, FSG, said that affordable housing provides an opportunity to low income households, especially the EWS, to own a house. He added that with a reasonably priced debt, readily available equity, and an opportunity for geographic expansion, the housing sector would grow over 30 per cent per annum.
Rashesh Shah, President, FICCI (left) with Dilip Chenoy, Secretary General, FICCI.