Mumbai: The Housing Development Finance Corporation Limited (HDFC Ltd) on Friday said it does not anticipate a further hardening of interest rates in the next two to three months.
"Hardening of interest rates depends on many factors like global interest rates, inflation and oil prices, etc. Given the current trend, I don't see interest rates to go up in the next two to three months," HDFC Ltd Managing Director Keki M Mistry told reporters on the sidelines of a FICCI-organised real estate summit here.
Replying to a question, Mistry said though the demand for housing finance from investors has slackened in certain pockets of the country, the demand from individuals is on a high.
"While talking about high interest rates, people miss the picture of the mid-1990s, when interest rates on home loans were about 17-18 per cent and the cost of borrowing was also higher. Now, the income of the individuals has gone up and on the other hand, interest rates are hovering around 9.5 to 10 per cent," he said.
"The demand for home land from end-users is thus very strong," he added.
Mistry said the bank expects its exposure to realty sector to go up by 25 per cent in the current year compared to a year earlier.
In the first quarter of the current financial year, the growth rate was close to 30 per cent, he added.
"In the realty sector, more than 75 per cent of our customers are end-users and thus we find demand to grow," he said.
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