Multiple triggers ahead for affordable housing finance companies

Investor interest in AHFCs has increased, given expectations of measures in the Budget to boost the affordable housing market as well as the growth trajectory

Mortgage finance remains a structural growth opportunity in India with a policy focus on affordable housing, housing shortages, low mortgage penetration, and rising incomes as drivers. Affordable Housing Finance Companies (AHFCs) serve the mass market, low-income segments, which is the least-serviced category, and to operate in this segment, the mortgage provider needs good assessment skills.

AHFCs and HFCs have also been increasing exposure in other mortgage segments (loan against property, developer loans among others). Investor interest in AHFCs has increased, given expectations of measures in the Budget to boost the affordable housing market as well as the