Af­ford­able Hous­ing Re­quires Fur­ther Stim­u­lus: Rashesh Shah

FICCI Business Digest - - Contents -

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.

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