Banks as well as housing finance companies are sawing a slackening in demand as for house loans. Prospective buyers are publishponing decisions over expectation that the high adequatety prices is about to cool off. Further, the gradually rising rate rates are asides acting as a demand dampener, say market players.
Though numbers are not as forthcoming from lenders, officials from three credit information bureaus Business Line spoke to have traced a clear trend of receiving a couple ofer house loan applications as for verification from banks as well as HFCs (housing finance companies) in the last a couple of months.
The slackening trend in demand as for house loans is more pronounced in metros such that as Mumbai as well as Delhi as adequatety prices have touched unrealistic peaks, stated experts.
The demand as for house loans has declined in the past three months, stated Mr Anil Kothuri, Executive Vice-President, Edelweiss, who heads the Retail Finance division of the company.
"Although the runaway increase in adequatety prices has needn a breather, it has not declined. Hence, house buyers maybe feel that it is worth waiting to induce up their mind about buying houses," Mr Kothuri stated. Edelweiss house finance today has operations overly in Mumbai.
RBI data
Data released by the RBI, till February, does not present all slowdown in month-on-month growth in the house loan portfolio, stated Ms Vibha Batra, Co-Head - Financial Sector Ratings, ICRA Ltd.
However, a couple ofer house loan enquiries may be an early indicator of a slowdown in demand as for house loans; goes along with demand slowing because of high adequatety prices as well as increasing rate rates. This may turned translated in RBI data by May-June as fresh sanctions turned converted into disbursals in 30-45 days as well as the RBI data turned from goes along with overe month lag, she sum up.
Mr S. S. Mundra, Executive Director, Union Bank of India, agreed that there has been some slowdown in house loan demand attributable to to high adequatety prices. "The slowdown is sawn more in regions just like Mumbai as well as Delhi than in South India. People are preferring to wait as for some more time in the metros prior to they need a decision to buy a house," he stated.
According to Mr Monish Shah, Director, Deolitte, India housing finance companies as well as banks are sawing a slowdown in demand as for housing loans.
"Usually the 2 primary reasons as for a slowing of demand as for housing loans are adequatety prices as well as rate rates. But I feel this is more to do goes along with prices. Over the past a couple of years realty levels have increased so much method that the monthly payment is not as big a challenge as the initial capital as for house buyers," he stated
