Deepak Balgobin : “My objective is to disburse Rs 1.6 billion loans for house construction”

Appointed as the new Chairman of Mauritius Housing Corporations (MHC), Deepak Balgobin has raised the standards and objectives of the financial institution. He aims at disbursing an amount of Rs 1.6 billion as loans. In the interview that follows, he elaborates on its priorities, upcoming projects and the future of real estates.

As the chairperson of the Board of Directors at the MHC, what are your priorities?
To be able to attain the set target of the year, I have raised the level quite high but on very smart objectives, to have loans disbursed for the population of Mauritius and Rodrigues up to an amount of Rs 1.6 billion. Last year, we were on Rs 1.4 billion. So, another Rs 200 million increase for this year. There were many projects announced last year but those projects were kept on hold. I have given priority to those projects. For instance, we will be launching the Domaine Du Hochet project.

These are house units for medium and upper medium class people. There are 119 units of different categories units such as penthouses, apartments and individual houses. The construction hopefully will be starting by end of October or November. It is an 18-month construction project. Moreover, there will be the construction of Residence Anthurium at La Tour Koenig. It is a project of 79 two- and three-bedroom apartments. All these projects are in line with the government’s vision to provide decent housing for people. In life, there are three basic needs: food, clothing and shelter. One of the fundamental basic needs of a person is shelter. NHDC is already doing low cost houses. We at MHC are looking for upper and medium families. In 2017, the society has evolved; young couples want to live alone. These kinds of projects aim at providing proper decent housing.

Since I was appointed as the Chairman in March, I have had the vision to go towards the public instead of the public coming towards us. In this objective, we are planning to open a new branch in Moka/Ebène and another one in the South. Another milestone: I am going to bridge the process of finalising our core banking systems. We are computerising the whole MHS system. We will be providing a better service and we have in the past heard of allegations of fraud, this system will prevent fraudulent activities.

Is there an increase in the demand of housing loans in Mauritius?
In 2014, MHC loaned Rs 1.3 billion and in 2015, the figure was Rs 1.07 billion. In 2016, the amount loaned was Rs 1.4 billion. For 2017, my target is Rs 1.6 billion. As observed, the gap has increased. Last year, January to July, there were around 890 clients for an amount of approximately Rs 840 million. For this year, for the same period we have got 880 clients for an amount approximating Rs 880 million. Even with the slight decrease of clients, the amount of loans has increased.  We are focusing more on quality loans.

What is the trend in the buyer behaviour concerning modern residential flats?
When we re-launched the project of Domaine de Hochet, in a very short span of time for 119 units, we already reached 140 reservations. This shows the interest for people to be able to buy a property, be it for themselves or for their children. We were selling 18 plots of land at Roche Brunes and we had tripled the number of booking. As observed, people are interested to have an asset in terms of real estate such as land, house and property. They want to invest their money instead of keeping it.    

What is being done by the MHC to help the lower class build their house?
There is no specific category of people we give loan to. I don’t agree when we tend say that we give loans to people with less income. On the contrary we also finance big promoters. We cater for all categories. This is only a perception of the people that MHC provides loans for low income people only. I beg to differ from them. We are here as a financial institution and provide a loan service to all.

What are the recently established schemes by MHC?
Recently, we have launched a new product for public servants and employees of parastatal bodies of Mauritius and Rodrigues. It carries a rate of interest as low as 5.2%. Moreover, we have waived off the handling fee of 1.5%.  In case, the person is building a house of an area of 120 square metres, the plan of the house is given free of charge.  Why this product? At the end of the day, MHC is a financial institution and we need to make profits. Last year we made Rs 250 million profits. We have to secure our loans. When we launched these schemes, the deductions came from their salary directly. It gives us a kind of guarantee for loan repayment. In 2017, we have had no arrears. We are trying to put a system of giving quality loans. We are doing a good screening to avoid bad debts. 

Recently, we have embarked on a new system of working. We have set up a sale and marketing team. We want things to happen. We are moving to a new dimension and another level. The new team will go and do road shows. With the various branches around the island, the sales officers will be attached to those branches. More customised service and targeting people. It will definitely increase our profit margins.     

As a member of the African Union for Finance Housing, does the MHC attract customers in Africa?
Not really. Being part of the AUFH is more about participating and getting collaboration, in terms of sharing technical expertise or training. It is more about promoting professional development among the AUHF members, give us access to key experts as well as provide members with opportunities to network with each other. 

What are your views on the real estate sector in Mauritius?
The real estate sector is moving very fast. People nowadays are well settled as compared to many years back. In a couple, both husband and wife work. People have access to quality education. Quality education allows people to think in a wider way. Hence, they think about investment. The best investment is real estate. All around the island, there are various properties. Real Estate is really taking a boost. At MHC level, we are not in competition with anybody. We are focusing on our objectives.  

As the chairman, how do you see the issue of housing being addressed in Mauritius?
The Minister of Housing is already doing a great job with the construction of 10,000 houses in different areas. With more construction of houses, the issue of squatters will improve and a feel good factor will prevail among the population. This is a proper welfare state. At the same time, MHC is giving loans for home construction and renovation. An amount of Rs 1.6 billion will be disbursed for the people. This means that people are getting the facilities to have a proper shelter. The future of providing houses to people seems very positive.  

How do you see the future of the MHC?
The future of MHC is very bright. It will continue to be a profitable organisation. We will embark upon various projects and these projects will help people to have a house. It is an arm of the government to provide assistance and facilities to all categories of people for decent housing. We want to be an unbeatable organisation in terms of service and an organisation going towards the people.