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Housing loans have not witnessed any slowdown in demand as yet, according to Mr Deepak Parekh, Chairman, Housing Development Finance Corporation (HDFC).
“Even if the interest rates were to go up by 100- 200 basis points it is not going to impact the demand. If it increases by 400 -500 basis points then we can't tell,” Mr Parekh told the press at the 34th Annual General Meeting of the company held on Friday.
He estimates interest rates to go up by around 50 basis points in two tranches in the fiscal ending in March 2012.
The demand for housing is driven by its shortage. “Since jobs are increasing, the demand for home loans is also increasing. The shortages are increasing especially in tier-2 and -3 cities,” said Mr Keki Mistry, Vice-Chairman and CEO.
In spite of builders being over-leveraged, Mr Mistry feels that they have land and other valuable assets. If they sell houses at an affordable price then they will not make any losses.
The company plans to come out with an IPO for its life insurance company in two years.
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