Keeping in view the demand-supply gap, our favourable demography, increasing urbanisation and growth prospects, the demand for housing finance will continue to grow, he said speaking at the RBIs Statistics Day Conference.
However, he said the changing business cycles can impact household and banks balance sheets, and hence, there is a need to develop a database on housing finance.
Risks also arise to household and bank balance sheets due to fluctuations in prices and changes in the business cycle. Hence, there is a need for developing a data base on housing finance.
Mohanty said at present there are two housing price indices sector regulator NHBs Residex, which includes data from 20 cities, and RBIs own index which covers nine cities. Mohanty said information like the loan-to-value ratio, equated monthly installments to income ratio, price-to-income ratio and borrowers characteristics are also very important.