Housing industry performing well

Sanjeevi Jayasuriya

The country’s housing industry is performing well with the opening of the North and East markets.

The Housing Development Finance Corporation (HDFC) will play a dominant role in this region where there is a high demand for the housing sector.

The HDFC plans to widen its reach to facilitate the housing finance needs thereby contributing to the socio economic development of the country, HDFC General Manager and Chief Executive Officer Suresh Amerasekera told Daily News Business.

“The HDFC recorded a productive year in 2010 where advances recorded substantial growth last year.

“It recorded improved performance compared to last year and is optimistic about this year provided the macro and micro economic indicators have been favourable,” he said.

The country’s banking industry performed well last year due to favourable economic conditions and this trend will be beneficial for the housing finance too.

The low interest rate regime has fuelled growth momentum in the local housing industry and the increase in the disposable income has been a positive impact. The HDFC could capitalize on the low interest rate which is expected to continue.

“We expect the demand for housing to go up this year based on a research done by the World Bank which stated that there is a 350,000 to one million housing requirement in the country. This will enable the housing finance industry to progress catering to the domestic needs,” he said.

The HDFC maintains a capital adequacy ratio of 20 percent which will provide the opportunity to increase the advances given.