KOLKATA, Mar 13 : India’s housing sector is experiencing unprecedented growth, fueled by robust government initiatives and favourable market conditions.
According to the latest National Housing Bank (NHB) report, housing finance companies have registered an impressive 14 percent year-on-year credit growth in Q4 2024-25, which is herald of strong momentum in the residential real estate market.
Individual housing loans outstanding as of September 30, 2024, stood at Rs 33.53 lakh crore, showing a growth of 14 per cent over the corresponding period of the previous year. As of
September 30, 2024, the economically weaker sector and low-income group (EWS & LIG)
accounted for 39 per cent, the middle-income group (MIG) accounted for 44 per cent, and the
high-income group (HIG) accounted for 17 per cent of outstanding individual housing loans, according to the report.
Individual housing loan disbursements during the half-year ended September 30, 2024, were Rs 4.10 lakh crore while disbursements during the year ended March 31, 2024, were Rs 9.07 lakh crore, the report states.
The past fiscal year saw a robust 8.3 pc increase in property values, according to the NHB’s RESIDEX, which measures residential property prices in 50 major cities. Record-low mortgage
rates, which, in spite of recent increases, are still advantageous at an average of 7.2 pc as
opposed to previous levels of over 9 pc, have accompanied this expansion.
In response to this conducive environment, real estate developers are launching more projects. The top eight cities had a 22 pc rise in the supply of new housing in 2024, according to Prop Equity data, with 60 pc of new developments being inexpensive and mid-segment housing.
“India’s residential sector has been witnessing an upscale shift, owing to the progressive government schemes and recently announced 14 pc Credit growth, highlighted in the NHB report. This upsurge is not just about numbers, it represents a paradigm shift in homeownership, affordability, and economic empowerment. These policies have further elevated financing and increased buyer confidence.
As credit expansion meets infrastructural progress, we are not just building homes; we are building futures. The Indian real estate sector is on the brink of unprecedented expansion, paving the way for
long-term economic stability and inclusive development.” Rahul Singla, Director of Mapsko Group.
The positive trajectory is further supported by regulatory reforms like RERA implementation and GST rationalization. The digitization of land records and single-window clearance systems in progressive states have reduced approval timelines by 40 pc, according to Knight Frank’s India Real Estate Report.
Yashank Wason, Managing Director, Royal Green Realty said, “The NHB report’s emphasis on the 14 pc increase in housing credit highlights how government programs like PMAY and lower house loan rates have revolutionized the Indian real estate market. In addition to making homeownership more accessible, these programs have increased demand, especially in the Delhi-NCR area. Infrastructure projects like the Dwarka Expressway and upcoming RRTS will drive an increase in residential sales in Gurugram, a major real estate hotspot. NRI investments and the city’s booming IT sector both contribute to its rapid expansion. With luxury segments flourishing, Delhi-NCR, especially Gurugram, is poised to lead India’s real estate resurgence, offering immense opportunities for buyers and investors alike.”
Industry experts project this growth momentum to continue, with housing demand expected to rise by 25 pc over the next three years. A sustainable ecosystem for real estate growth is being created by the mutually beneficial interplay between government efforts, institutional funding, and developer reaction. This is changing the housing scene in India and making a substantial contribution to job
creation and economic development.
(UNI)
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