Private sector lender Axis Bank on Wednesday said that country is well poised to see a growth in housing finance in the coming decade on account of multiple reasons.
In an interview to CNBC-TV18, Amitabh Chaudhry, managing director and chief executive officer, said, "Though the real estate market is still reeling under the tremendous pressure, there are visible green-shoots as everyone seems to be looking for an economic recovery, so let us get it out there. The residential property market has seen a steady uptick in sales volumes since 2017 and the trend is most likely to stay. It is a different problem that we have too many residential projects out there. However, the market in terms of additional sales volume is definitely doing better."
“According to the latest reports, the country recorded sales of around 115,000 new properties in the first nine months of this calendar year. Around 60 percent higher than at the same time in 2017 following the plunge after demonetisation. Notably, some segments and markets are doing better than others. The government has introduced a slew of measures to support this sector and we are hoping to see those factors play out over the next few years,” he added.
Further, Chaudhry said, “There are big strengths in the industry and as lenders, we need to acknowledge them. This sector will have to grow significantly to contribute to India’s growth story. Housing is one of the fundamental human needs and for a developing economy like ours, both housing and real estate are extremely important sectors as they set the trend for economic growth."
According to Chaudhry, real estate happens to be the larger employer of the workforce in developed economies and in the case of India, it is the second-largest employer in the country.