Investor Presentaiton
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Mortgage Market in India
Indiabulls
HOUSING FINANCE
Since 2013, property prices have grown at 1-2% CAGR, significantly below inflation [~5% CAGR] and wage
growth [~8% per capita]
Consequently, 'Affordability' [ratio of house price to annual salary] is at at its best in the last 25 years
Benign interest rates further boosts affordability
Best Affordability in over 2 decades
60
654
50
40
30
22.0
20
15.6
10
11.1
8.3
6.6 5.9 5.3 5.1 4.7 4.3 4.7 5.0 5.1 5.1 4.5 4.7
0
16
14
12
10
8
∞ 6 + 21
4
4.8-4.6-4.7-4.64.44.1
3.8 3.7 3.5 3.3 3.2
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Property Cost [Lakhs]
Annual Income [* Lakhs]
Affordability
Low mortgage penetration in comparison with advanced and emerging economies implies vast opportunity
for growth
Source: HDFC Ltd, Investec Securities Research
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0
Mortgages as a % of GDP
89%
83%
68%
52%
56%
34%
39%
44%
45%
i11%
18%
20%
Malaysia
Japan Singapore Germany
USA
Australia
UK
Denmark Netherlands
32
India
China
Thailand
Source: European Mortgage Federation, Hofinet and NHBView entire presentation