Witnessing one of the highest amount of loan disbursements among several states, Gujarat grew by 60-70 per cent by end of second quarter of financial year 2009-10, said Renu Sud Karnad, managing director of Housing Development Finance Corporation (HDFC) Limited.
In Ahmedabad to launch HDFC Property Show 2010, Karnad said, "Gujarat has grown by 60-70 per cent in loan disbursements, which is one of the highest in the country till September 2009. Among its cities, Vadodara and Surat grew the most, followed by Ahmedabad and Rajkot."
While the finance company already has 14 branches in the state, including Anand, Gandhidham, Dahej and Bharuch, it is planning to set up three more branches in Mehsana, Gandhinagar and Silvassa.
For visitors to the property show, HDFC is offering a fixed interest rate of 8.25 per cent for first two years, followed by a higher interest rate for the remaining period.
According to Karnad, about 40-50 per cent real estate developers in Gujarat are looking at affordable housing. "Houses in the range of Rs 20-35 lakh are being looked at by these developers. It is understandable since the maximum demand is coming from consumers, individuals as well families, in the income bracket of Rs 20,000-40,000 per month," she added.
Admitting that property prices grew by 10-15 per cent in recent times, Karnad said, "This time the demand is more from end-user than investors. In last boom, 30-40 per cent of demand came from investors in property while this boom is seeing more demand from end-users."
Having sanctioned loans worth Rs 28,418 crore and disbursed worth Rs 22,500 crore till September 2009, HDFC is now expecting a growth of 20-22 per cent by end of financial year 2009-10. The housing finance company has cumulatively sanctioned loans worth Rs 2,65,868 crore and disbursed loans worth Rs 2,15,000 crore since 31 years.