LIC Housing Finance MD and CEO Siddhartha Mohanty on Tuesday told Zee Business Managing Editor Anil Singhvi that as far as Realty sector is concerned there has been great interest shown by the buyers over the last two months.
“Not only the affordable segment, but per my experience in the last two months there has been tremendous response in the entire sector. Earlier, there was interest in affordable segment, however, it has changed now, especially in the past two months. Upper mid segment and even premier segment are witnessing good response. This is the most favourable time for Realty sector,” he said. Significantly, he added that this is the best time to buy a house as per his experience of 35 years.
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Explaining it further, he said, currently, interest rate is at the lowest, the government has provided tax benefits, there is also plus PM Aawas Yojana subsidy for first-time home buyer and lastly, builders are also providing many sops and incentives.
This sector was earlier struggling due to two issues—liquidity and demand, he said. “Liquidity is available in abundance and consumption demands is also picking up across the segment, including luxury segment too” Mohanty said.
Talking about who is driving the demand—salaried class or business class, Mohanty said, major portfolio of LIC Housing Finance comprises salaried class. “Around 87 % of our portfolio is filled by salaried class. Currently everyone, including, those who are less affected by the pandemic are also showing interest in this sector, given favorable situation for realty industry. Even businessmen and professional investors are also taking loans currently,” LIC Housing Finance MD said.
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The government and Reserve Bank of India (RBI) stepped in at the right time to tackle crisis arising out of the Covid 19 pandemic, he said. “I believe our asset quality will continue to improve, there won’t be much increase in NPA and we will definitely move on the growth path.”