The housing market in the southern States has recovered in recent months after the low witnessed between September last and January. Combined with easing of credit flow and overall economic recovery, the sector is all poised for growth, according to Mathew Joseph, HDFC Regional Manager.

In an interview to The Hindu in Madurai on Friday, Mr. Joseph, who looks after Tamil Nadu and Kerala, said that since April, every month recorded higher growth than the preceding one.

Mr. Joseph was here to inaugurate the HDFC’s three-day “Affordable Homes Show,” in which 16 major real estate developers are taking part.

“Developers have learnt from this recession and are now concentrating on providing affordable homes. “Budget homes” is now the mantra and customers are realising that this is the best time to buy,” he said.

Huge and luxurious homes that had driven the bubble in the sector along with speculators and investors were being replaced to a large extent by reasonable and affordable houses. For the customer, two things were major factors – the cost and the developer, he said.

The benefits of easing credit flow and softening interest rates would be highly visible in the tier – II and III cities, which are also seeing growth. “It is not that metros alone are growing. Further, after Chennai and Coimbatore, it is Madurai that is seeing growth every month for the HDFC,” said Mr. Joseph.

An indicator of the potential of Madurai, he said, was that the home show featured major real estate developers from outside the city. This indicated that they had the confidence to invest in Madurai.

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