Despite rising house prices and rising interest rates, the pace of loan taking is increasing significantly. In the last two years, housing loans have increased by about Rs 10 lakh crore and reached a record Rs 27.23 lakh crore in March this year.
Analysts believe that due to the strong improvement in residential properties after Corona, there has been a tremendous increase in housing loans. According to RBI data, the total housing loan was Rs 17.26 lakh crore in March 2022, which increased to Rs 19.88 lakh crore in March 2023. According to the data, the total borrowing in commercial real estate stood at Rs 4.48 lakh crore which was Rs 2.97 lakh crore in March 2022. Madan Sabnavis, Chief Economist of Bank of Baroda, says that due to government efforts, the demand for affordable houses has increased. Also, house sales had decreased significantly in Corona and now it is increasing at a faster rate. However, in the coming time the growth rate of home loans may remain between 15-20 percent.
Demand for cheap houses also increased
The average home loan size also increased due to the cost of houses. According to analysts, prices have increased between 50-100 percent in major tier-1 cities since FY 2021. This has also increased the average home loan size. Home loan growth will continue due to strong demand for residential property. Industry experts believe that the real estate sector will reach one trillion dollars by 2030. According to ICRA, from July 2023 HDFC Ltd. Due to the merger of HDFC Bank with HDFC Bank, there has been an increase in the home loans of banks.
