Ahmedabad: Due to spurt in demand for new homes after the Covid-19 pandemic, disbursements home loans In 2021-22, the level has crossed the pre-pandemic level. According to the State Level Bankers’ Committee – Gujarat report, disbursements under housing finance increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22 – a 17% increase over the two-year period. The 173rd meeting of SLBC was held in Ahmedabad earlier this week.
Even as compared to 2020-21 when housing finance disbursal stood at Rs 23,532 crore, there was a 12% increase in home loan growth.
“Till March this year the interest rates on home loans were very low and hence, many potential buyers signed deals for new homes. The overall demand was good in both the affordable segment as well as the medium to premium segment of homes. Many people Also opted for upgrade, which also increased the demand for loans.
According to developers, after two years of pandemic, youngsters have taken an active interest in investing in a new home. Realtors benefited from this new segment of buyers. Industry players suggest that the demand has been good across all segments, be it affordable, mid segment or even premium segment. Even the spurt in new project launches remains the same.
Homes in premium segment are in demand, say developers
AHMEDABAD: Riding on a spurt in demand for new homes a year after the pandemic, home loan disbursement has surpassed pre-pandemic levels in FY 2021-22.
According to the latest report by the State Level Bankers’ Committee (SLBC), Gujarat, disbursements under housing finance increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22, a 17% increase over the two-year period. The 173rd meeting of SLBC was held in Ahmedabad earlier this week.
Even as compared to 2020-21 when housing finance disbursal stood at Rs 23,532 crore, there was a 12% increase in home loan growth.
“Till March this year the interest rates on home loans were very low and hence, many potential buyers signed deals for their new homes. The overall demand was good in both the affordable segment as well as the medium to premium segment of homes. Many People also opted for upgradation, this also increased the demand for loans,” said a top source at SLBC, Gujarat.
In terms of the number of applications, demand is almost at par with pre-pandemic levels; However, the distribution amount has increased. As per the SLBC report, 2.73 lakh home loan applications were approved in 2021-22. This is marginally lower than the 2.76 lakh home loan applications processed during 2019-20 – a year before the pandemic – indicating that the market has bounced back.
Explaining this, Tejas Joshi, President, CREDAI, Ahmedabad said, “The youth was more inclined towards renting and not buying a house. However, after the pandemic, youth have taken an active interest in investing in a new home. Realtors have benefited from this new one. At the same time, with loan interest rates remaining favourable, demand was good across the board, i.e. in the affordable segment, as well as for the mid-segment and premium segments.”
Compared to the pandemic year 2020-21, home loan applications grew by 13% from 2.40 lakhs. According to developers, the overall demand for new homes remained strong in 2021-22, especially in the premium segment.
Elaborating on consumer sentiment, Ajay Patel, President, CREDAI, Gujarat said, “Over the last one year, the overall consumer sentiment has remained positive. During COVID-19, people have realized the importance of a good and spacious home. And so many people even upgraded their homes. This is especially true for the fourth quarter when the market sentiment was very positive with earnings and sentiments improving.”
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