There are always some elements that are favorite subjects of discussion at every family gathering, have coffee meetings or conversations, as the latest movies, the latest results of the Indian cricket team and developing new housing in the city, and how the price is high and unaffordable.

Stacks of newspaper columns and television minute has also been used to explain how rising prices and rising interest rates will slow growth in the property.

However, as a deaf frog jumped out of another’ s property to other frogs crying, “No can do”, the area of ​​housing finance has been steady and continues to record impressive growth, despite the many challenges the sector.

While buying a house metros like Delhi, Mumbai, Chennai or even a dream for many cities, including Surat, Ahmedabad and Coimbatore are fast catching up as a hot real estate destinations.

With all segments of buyers to see an increase in their income, there is still growing at a higher level as the owner of the two-bedroom apartment to buy an apartment with three bedrooms, or the owner of a detached house to pass a house that leads to growth at all levels.

Tier II and Tier-III-market, growth drivers: Each company in India, spoke of the growth goes into Level II and Level III markets and housing finance business is no different.

“Tier II and Tier III, the market supply is limited and demand is huge. There are a lot of economic growth in smaller markets, and then I want to buy a first home is also widespread,” said VK Sharma , CEO of LIC Housing Finance.

In addition, migration is happening in the villages and small towns to the layer-II and Tier III markets due to the creation of new jobs resulting from the purchase of property, according to industry members.

“There is no slowdown in demand in Level II and III markets, and we do not see any effect of the high price or interest there. If the house is within their budget, buyers do not hold back the purchase, “said Manish Srivastava, Managing Director, Muthoot Housing Finance. In fact, the company, a subsidiary of the loan of gold, Muthoot Finance, recently launched to take advantage of opportunities housing finance in small markets.

In the eastern markets of the country as Ranchi and Durgapur shows the growth of housing finance companies, while in the west, Nagpur, Surat and Aurangabad promising. In the markets of central and northern belt is like Lucknow and Bhopal are growing, while in the southern part of the country for half a dozen Level II and Tier III cities seem promising for many companies.

“People in the class of people dependent on Tier II and Tier III cities in South India is much higher than in other countries. So, if Trichy, Salem, Madurai in Tamil Nadu, or disintegrates or Palakkad, Thrissur and Kottayam in Kerala and Vizag, Vijayawada in Andhra Pradesh, a lot of economic activity and real estate development, therefore, “said Srinivas Acharya, Managing Director, Sundaram BNP Paribas Home Finance.

Meters have lost their charm: a few years ago it was fashionable for most real estate development companies that claims to advertise expensive luxury villas and gated community projects 20 to 30 km underground. While many projects are still to be completed, even those that are done, use a left side, due in large part to the lack of decent roads connect to the city.

Even today, many real estate developers to notify projects in and around metros. But most of these are mostly medium-sized projects with the unique-selling-proportion (USP) is the price that is among the Rs 15-35 lakh, which shows the demand really is.

“We see some growth lag in the real estate market in the Tier I cities, mainly because no new projects are to come. This is especially true in cities like Mumbai,” said VK Sharma, CEO, LIC Housing Finance .

“Tier II and Tier III markets to be exploited. Yes, but not at the cost of Tier I cities,” seems to be the mantra of most housing finance companies.

“There is growth in all segments. For a growth in value, you must meter while Level II and Level III cities offer volume growth. If we are funding 20 projects worth

Rs 10,00,000 each in small towns, a city for Rs 2,00,00,000 in a subway to catch up with everyone, “said Anil Kothuri, the first retail financing, Edelweiss Capital.

Advances In addition, computerization and others, the titles are clear tier-I cities and metropolitan disbursals loan process easier, he adds.

Low cost housing and micro-mortgages: These are the new watchwords for most housing finance companies, since it is a huge demand waiting to be found in these segments. There are approximately 21 million households in India with a monthly family income of 7.500 to 25.000 rupees and could be a target for the segment of low-income housing. There is an opportunity estimated R 1.1 million crore in this segment, according to data provided by the National Housing Bank (NHB).

A house at low cost is defined as one that costs between Rs 30-10 lakh and is a very poor market. It presents an opportunity for 8,80,000 crore rupees mortgage, NHB, he said.

As microfinance, is how little note loans of a few thousand rupees are given to the poor to help create and develop income-generating enterprises, the concept of micro-mortgage or to provide small loans to people poor to buy / build a house is also increasing popularity in India.

And ‘the idea of ​​a long-term accommodation and financial city low-income families and micro Housing Finance Corporation (MHFC) was established in May 2008, the National Housing Bank. MHFC has offices in Mumbai, Pune, Ahmedabad and Kolkata, and is justified in more than 600 loans amounting to Rs 30 crore as in March. Their target market, according MHFC, economically marginalized, urban, low-income people, such as vegetable vendors, barbers, maids, drivers and security guards.

“And ‘the bond offering in the micro-mortgaging with the availability of clear title is the problem. Therefore, when the guarantee is a problem. This is a solid, so that the simplest loan disbursement” Kothuri reasons.

Obstacles ahead: Since the first time home buyers are buying despite the increase equated monthly installments (EMIS), caused by rising interest rates and rising house prices, the party will continue for ever, companies understand.

The rate may be shown to run the buying behavior rather than later, they say. “We are seeing some of the feelings of the buyer absorption. This is particularly evident in the Tier-I of the market,” says Srivastava.

Q2 and Q3 the number of companies are housing finance very helpful to see the direction the industry would take in the coming years, according to industry experts.

“Disbursals is an ongoing process. In some cases, even for those loans a year ago. But there seems to be a bit of stress visible in the sanction of the loan or signing new customers. We have to wait and see if it covers a longer period, “warns Sharma.