Aadhar Housing Finance Limited (AHFL), supported by Blackstone, is poised for significant growth with expectations of a more than 20% increase in its order book and disbursements in the low-income housing segment. The optimism stems from anticipated policy support in the upcoming budget aimed at bolstering ‘Housing for All’ initiatives.
According to a spokesperson from AHFL, the company has appealed to the government to revise the income thresholds for economically weaker sections (EWS) to INR 5 lakh and low-income groups (LIG) to INR 10 lakh, citing the need for updated criteria in line with current economic conditions. In the fiscal year 2023, AHFL disbursed INR 6,000 crore, followed by INR 7,100 crore in FY 24, underscoring its robust growth trajectory. The company reported a commendable 20% increase in its order book, profits, and disbursements last year, a trend it aims to sustain in the current financial year amidst strong demand within the segment.
Uttar Pradesh emerges as AHFL’s largest market, contributing approximately 15% to its revenue, while metro cities like Delhi and Mumbai also significantly bolster its financial performance. The spokesperson highlighted that rising construction costs have compelled most business activities towards self-construction or resale properties, with fewer transactions involving builder projects. AHFL is actively exploring opportunities in Northeast India and Jammu and Kashmir, eyeing untapped markets for future growth. Currently operational across 20 states and union territories with 424 branches and offices, AHFL maintains a substantial Assets Under Management (AUM) of INR 16,566 crores as of December 2022, cementing its position as a key player in the low-income housing finance sector.
AHFL advocates for policy measures such as the reintroduction of PMAY (Pradhan Mantri Awas Yojana) across a broader geographical spectrum, enhanced subsidies under the Credit Linked Subsidy Scheme (CLSS), and a unified approach to urban and rural housing schemes. They also propose revisiting priority sector lending limits to better accommodate evolving market dynamics and foster public-private partnerships to boost affordable housing inventory. AHFL’s proactive stance amidst evolving policy frameworks and market dynamics underscores its commitment to expanding affordable housing accessibility across India. With a strategic focus on innovation and customer-centric solutions, AHFL remains poised to capitalize on emerging opportunities and contribute towards fulfilling the nation’s ambitious housing goals.
