A recent press report said that Housing loans have not witnessed any slowdown in demand.
Mr. .Deepak Parekh, Chairman, Housing Development Finance Corporation (HDFC) has also told the press that the housing loan have not faced any slow down in demand in spite of the increase in interest rates. He also said that the hike in interest rates even up to 100- 200 basis points will not affect the demand.
He added saying that the demand might vary if the interest rate increases by 400 -500 basis points. He also said that according to his estimates interest rates might go up by around 50 basis points in two tranches in the fiscal ending in March 2012.
Mr. Keki Mistry, Vice-Chairman and CEO of the company said that the demand for housing is due to its shortage. He said that the demand for home loans were increasing due to increasing jobs and that the shortages were increasing especially in tier-2 and -3 cities. He said that the builders in spite of being over-leveraged can sell houses at an affordable price in order to avoid loss.