Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
Housing Finance Industry is considered as a very lucrative business globally. But in Pakistan it is challenging business. This industry supports directly the growth of the economy. So Financial Institutions are involved in doing this business under their Consumer financing are operating other then banks which are seen as a many umbrella globally. Specialized mortgage companies property functioning and making money out of it along with contributing to the economy.
Globally this product of Housing Finance is considered as a very profit making product. Customers who are Salaried or Self Employed Businessman can apply for Housing Finance and can get a Dream Home by borrowing money from these Financial institutions based on their profile and income stability.
In Pakistan almost every Bank is either actively involved or have been involved in this business in past. But currently it has been observed that only few Banks are aggressively perusing doing this business and the rest are deliberately avoiding lending money in this avenue to the best of their potential.
If we observe the last 10 years trend we can easily see that the large scale Local banks are. clear,ly not showing any interest in Housing Finance Business even after strong encouragement from the central bank. They are either scared or are not expecting good returns from this.
Even after realizing the fact that the property prices in Pakistan are continuously increasing and the percentage amount financed against the property will keep on reducing against the current market price, these banks are not showing any signs of willingness.
Haider, S. R. (2016). Factors for slow growth of mortgage business and lesser interest of commercial banks (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/171
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