Affordability heads for 30% growth rate

With the increased focus and aggressive policy initiative by the government, the low cost housing segment is likely to grow at a faster pace than industry at above 30%., ICRA rating agency mentioned in its newest report, claiming that efforts are being made to address the supply side, demand, and affordability issues, and are likely to expand the borrower base, Senior Vice President and Group Head, Financial Sector Ratings, Rohit Inamdar said.

The government has increased its focus on the affordable housing segment by giving 39% higher allocations under the PMAY for this financial year against 2017 fiscal and extending the Credit Linked Subsidy scheme to loans of value upto Rs.1.2 million to cover the middle income group (MIG) as well. The delinquencies in the affordable housing and self-employed segments reported some increase after demonetization, owing to their relatively higher share of self employed segment which got more impacted due to demonetization.