New Delhi, Sept. 29 -- Growth for affordable housing finance companies (AHFCs) is increasingly likely to depend on expansion into new catchments as mature branches face stagnating growth, while competition intensifies across smaller cities and higher-ticket loans, Systematix Research said in a report.

The report published on Monday, is based on an evaluation of 42 branch-level interactions and checks across Maharashtra, Karnataka, Tamil Nadu, Telangana and Rajasthan, and suggests that the affordable housing opportunity remains intact, but the "growth equation is changing".

Branches with more than Rs 500-600 million in assets under management (AUM) are increasingly seeing growth stagnate as their existing catchments become more penetrate...