Housing market to pick up in Tier-2 and 3 cities over the next 2 yrs: Sundaram Home Finance

Sundaram Home Finance has pegged tier II and III cities to be the growth drivers over the next few years and has drawn up plans to recruit 200 people in the southern market, company Managing Director D Lakshminarayanan has said. The company was bullish on the long term prospects of the real estate sector, he stated.

"The housing market will continue to remain resilient and grow this year, flagged by a strong underlying end user demand and growth of smaller cities. The housing demand will see reasonable growth in 2022 and return to the pre-pandemic levels".

According to him, the city-headquartered company has seen a growth spike in disbursements month on month in the last six months that is comparable with the numbers registered in the pre-pandemic period.

The residential market has gathered momentum post second wave and buyers have been back exploring several options.

There is renewed confidence among the buyers and the general buoyancy in the market is reflected by the number of new projects, he said.

To a query, he said the Covid-19 pandemic has altered the way one lives, works and learns.

The overall health, hygiene and wellness concerns during Covid-19 significantly shifted the focus towards spacious homes away from densely packed cities, he said.

"Further riding on the wave of sustainability and prospective investment, the holiday homes and the secondary housing segments have emerged as sought-after option for buyers", he said.

Lakshminarayan said the company witnessed a 'paradigm' shift in the real estate sector towards tier 2 and 3 cities.

"We are bullish on the long term prospects of the real estate sector. The government's Housing for All vision and the affordable housing projects will ensure that there are enough opportunities in the segments we are in for Sundaram Home Finance to grow in the long term", he said.