+91 7304447444 Connect to our virtual assistant
YouGrowWeGrow

Stay Up-to-Date with Our
Blogs & Articles

Go Back to Main blog page

Have You Analyzed the Opportunities in Housing Finance Market?

By IIFL Home Loans | Published On Jun 01 2017 1:00 PM 2 min read 21 views 2447 Likes
Have You Analyzed the Opportunities in Housing Finance Market?

Written by Jayant Upadhyay

Real estate is an important investment avenue for many stock and mutual fund investors. From last few years, the investors were unwilling to pour money into the market due to its stagnant growth. However, there is a positive sentiment in the market now because of constructive initiatives of government. As per ICRA report, investor sentiment was positive in FY2016-17 45 billion + capital infusion as compared to FY 2015-16 26 billion capital infusion. The risk factor seems more mitigated in the coming financial year 2017-18. As per a CRISIL Report, over the next four years, affordable housing finance companies are likely to grow at a CAGR of 40%.

Credit Linked Subsidy Scheme for Middle Income Group

With an announcement of Credit Linked Subsidy Scheme for Middle Income Group People CLSS-MIG, the housing finance sector is likely to set for a leg up. 70 lending institutions have already signed MoUs Memorandum of Understanding with National Housing Bank for implementation of CLSS-MIG Source: PIB. There will be more inflow of funds in the sector because of an accorded nfrastructure status to the affordable housing segment.

Investment in Portfolios Property, Stocks, REITS

Some of you prefer investing in physical property & stocks of real estate companies and some of you want to do an investment in REIT Real Estate investment Trusts. At the global level, REITS has outperformed leading stock market indices over the last 1 decade.
The 5 year average for the return on REITS ranges between 7 to 16% globally. Source: money control

Focus on Infrastructure development & Smart Cities Mission

The government is very focused on infrastructure development as is evident from a plethora of ongoing road projects. The government is working for the widening of NH-24, which will boost the real estate market of the surrounding area. The mart Cities Mission will enhance the quality of life in the region. Demand for housing will scale up with facilities of better electricity & water supply, good governance, intelligent transportation systems and adequate Medicare facilities.

Abolition of Foreign Investment Promotion Board

While presenting budget 2017, the government wants to abolish the Foreign Investment promotion Board FIPB. This will ease regulatory hurdles in attracting investments in the real estate sector. There were not being requirement of any approval from FIPB and need to pass through sectoral laws.

Falling off Interest rates

The inflation has been falling gradually through this year and owing to this RBI slashed the REPO rates. The decreased REPO rates make banks avail money at low rate of interest and as a result, lending institutions cut down the interest rate on home loans.

In India, most of the people rely on home loans to purchase a property. This finance option is open for all salaried & self-employed individuals. Even, organizations are dependent on housing loans for commercial and industrial properties.

Tags

Quick and Hassle Free Loan Processing

Latest Blogs

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Most Read Blogs

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.