Industry body Federation of Indian Chambers of Commerce & Industry (FICCI) viewed that the Indian housing sector is key to double-digit growth for the economy.
FICCI President Rashesh Shah said that housing is a vital sector in achieving double-digit growth.
Shah released the ‘State of the Low-Income Housing Finance Market 2018’ and said that there is a demand-supply gap of 20 million in the housing sector. “It will take around 8-10 years to fill the demand-supply gap in the housing sector,” he added.
Shah called for a further stimulus for the housing sector by increasing the loan tenure for individuals under the EWS category to 20 to 30 years as these are asset-backed loans. The loan tenure is 5 to 10 years presently 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 in affordable housing during the past three years, “I expect more growth in the coming 5 to 6 years for the sector,” Shah said.
Ashish Karamchandani, Senior Advisor, FSG said that affordable housing provides an opportunity to low income households, especially the EWS (Economically Weaker Section), to own a house.
He further added that with a reasonably priced debt, readily available equity, and an opportunity for geographic expansion, the housing sector would grow over 30% per annum.