Demand for Home Loans to Rebound
The demand for home loans will rebound in the medium term as Covid-19 pandemic is changing working habits, according to the Keki Mistry, HDFC CEO, India’s largest mortgage lender.
“With the country on lockdown and as the pandemic looks to stay for a while, millions of people have been forced to work from home. This will be a benefit for real estate and in turn increase sales. The lockdown could in fact push people to buy larger houses or those with separate study rooms. The housing financier’s profit fell by more than a fifth year-on-year to Rs 2,232.5 crore in the quarter ended March as it set aside more money to account for Covid-19-related disruptions. However, their expectation is that the second quarter will be better than the first, the third better than the second and hopefully, by the fourth quarter this year they will be back to 85 to 95 percent of normal levels,’ Mistry stated.