Can Aavas Financiers be a long-term play on growing housing finance industry?
Business

Can Aavas Financiers be a long-term play on growing housing finance industry?

By Dan Neff

The expansion of the housing market will considerably impact the country as a whole because the real estate or housing industry, in particular, is connected with numerous sectors.

Synopsis

The home loan market in India is estimated at around $300 billion. This represents a mortgage to GDP ratio of 11%, which is relatively low compared with others, particularly developing Asian countries. The housing finance market is expected to grow to $750 billion in the next five years, according to the FY22 Annual Report of Aavas Financiers.

Housing finance is an under-penetrated industry that offers a sizable growth runway for Aavas Financiers. Until now, the company has been able to take care of its asset-liability profile, which helped it manage the headwinds of the NBFC crisis and Covid. Will this situation remain the same as its loan book grows?The home loan market in India is estimated at around $300 billion. This represents a mortgage to GDP ratio of 11%, which is relatively

BY

Gaurav Jain & Parimal Ade

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Dan Neff