Written by Himanshu Arora

Himanshu works as a national head for construction finance & retail home loans at IIFL Home Finance Limited. His deep knowledge and expertise in the sector would help prospective homebuyers make a wise decision. He will not only help us understand how market cycles have again started playing, but also how is this a good time for all the stakeholders of real estate industry developers, housing finance companies and home buyers.

1. What are the considerations for consumer home loans

Consumer home loans is the prime and most focused product, offered by us, where through our varied offerings, we tend to cover largest possible universe. The basic consideration for this product is income and collateral. On income side, we are funding both salaried and business profile clients. On collateral side, we fund builder flats, independent houses and individual properties.

2. What is the impact of sluggish residential sales on housing finance segment

India is a big consumer market and housing is the most basic necessity of people. Although we are noticing sluggishness in housing sector but this can be further split between segments. Here, the high ticket size inventories are facing real heat. Otherwise, affordable housing segment, driven by end user is not that much affected. Therefore, I see upward trend in next few months.

3.Brief on Non-performing assets & mortgages in the current residential real-estate market scenario

On short term basis, with temporarily liquidity problems and low demands, real estate is facing trouble. However, on long term, with new constructive initiatives undertaken by government both on affordable housing and new regulatory norms like RERA, I am hopeful of real estate sector going green from now onwards.

4. Affordable housing is gaining more attention. What are your views on this

ffordable housing has been accredited with nfrastructure status There will be an availability of easy and long term funds to developers. Government has announced Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana for Middle Income Group MIG 1 & 11, effective from 01.01.2017. This will increase the number of beneficiaries under the scheme. As per a recent research report, affordable housing finance companies are likely to grow at a CAGR of 40% over the next four years Source: goo.gl/87jikU

5. Please comment on the housing finance sector engagement with real-estate developers

Housing finance sector is getting engaged with real estate developers and using that as a backward integration to their core offering i.e. home loan, this association is mutually rewarding for both. Availed finance will be utilized for the construction of the projects. And, HFCs will fund end users for buying properties.

6. What is the future outlook for housing finance companies in the financial year 2017-18

HFCs can see great business opportunities in new financial year 2017-18, with pricing going down and affordable housing getting push from constructive initiatives of government. With enhanced transparency and regularization of real estate sector, housing finance segment looks more strengthened and positive.

With new constructive initiatives undertaken by government both on affordable housing and new regulatory norms like RERA, I am hopeful of real estate sector going green from now onwards