HDFC Chairman Deepak Parekh Friday said the housing and real estate sector is “heading into the best of times” with a lot of “optimism in the air”.
“In over 50 years of my work life, I have not seen housing affordability better than where it is today in India. I have not seen such easy liquidity conditions and interest rates at such record low levels,” Parekh said. “Most importantly, I have not seen such a burning desire to be a homeowner than in these current times,” Parekh said at a conference organized by Credai Bankon 2021. “Right now, there is a lot of optimism in the air on the potential of the housing and real estate sector. This isn’t just feel-good talk, it is real,” he said. “The Indian real estate market is on the cusp of a new growth cycle and it is important that we make the best of it,” Parekh said.
According to Parekh, housing markets move in cycles and research suggests that for India, the peak and trough of each housing market cycle typically entails a duration of 6 to 8 years. “The last peak for the housing sector in India was 2012-13, and the triggers for the decline thereafter entailed impacted affordability, tight liquidity, developers finding themselves acutely over leveraged coupled with projects starting to get massively delayed on a large scale,” he said.
“The reason why I am optimistic about the future is that while home sales have been happening, the real shot in the arm has been the recent pipeline of new launches,” he said. This is the greatest mark of confidence for the future, he added.