Overexposure soon led to defaults by both individual borrowers and housing finance companies. A crisis at IL&FS, the giant infrastructure lending non-bank financial company, was a telling signal.
One fall out of the end of the housing boom is signs of a crisis in the housing finance market, given the close integration of the financial sector and the housing sector. Outstanding housing loans of the Housing Finance Companies increased from Rs. 1.9 trillion in 2011 to Rs. 3.5 trillion in 2014 and Rs. 6 trillion in 2017.
What can be done to stabilise the industry and the housing finance sector? Know more about the housing market scenario in the country from this episode of Money Matters.