The demand within the affordable housing segment remains robust. Given that the target customer of this segment typically relies on bank funding. Consequently, ICRA research has taken a note of the significant growth in the sub Rs 250 million category.
Even as demand for cement has picked up from Q3 FY2018 and the trend is expected to continue in Q4 FY2018, with the growth expected at around 5% in FY2018 and FY2019, expectation of higher petcoke, coal and diesel prices are likely to put pressure on the profitability margins and debt metrics of the cement companies in the coming quarters.
The 14th edition of Municipalika, a three-day exhibition and conference on Smart and Sustainable Cities, organised at CIDCO Exhibition Centre, Navi Mumbai, from 18th to 20th May, ended on a high note, providing valuable insights and solutions for urban infrastructure and housing development in India.
Infrastructure status for affordable housing was a long-standing requirement of the sector. This move should boost the volume of construction activity across the country, which has been struggling with reduction in the number of projects being launched over the last few quarters.
With infrastructure, we expect the affordable housing segment to develop a new degree of velocity because the cost of capital is going to reduce and lenders are going to be motivated to invest money in this sector. Likewise, the tax status for development is beneficial with the infrastructure status.