New Delhi: The outlook for India’s housing sector remains promising, driven by budget announcements on PMAY 2.0, urbanisation, transit-oriented development and digitisation, according to the National Housing Bank report on “Trends and Progress of Housing in India 2024” released on Wednesday.
“The housing sector is growing due to government initiatives, stable interest rates, and technology integration,” the report states.
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.
For the quarter ended September 2024, the Housing Price Index (NHB-RESIDEX) recorded a year-on-year increase of 6.8 per cent as compared to 4.9 per cent during the previous year.
While global economic stability and falling inflation provide a positive outlook, the housing sector remains pivotal in driving both investment and societal needs across regions, the report states.
The report highlights how major initiatives of the government, such as the Pradhan Mantri Awas Yojana-Grameen (PMAY-G), the Pradhan Mantri Awas Yojana-Urban (PMAY-U), impact assessment of the PMAY-U, the Urban Infrastructure Development Fund (UIDF), the Affordable Rental Housing Complexes (ARHC) scheme, etc. have contributed to the development of the housing sector in the country.
The report also identifies regional disparities in credit flow and vulnerability to climate-related risks, as some of the key challenges to be addressed by the sector. It also identifies technological advancements in construction, digitisation of land records etc. as some of the factors which will facilitate growth opportunities for the sector.
The NHB is a statutory body under the government. Its report broadly covers the housing scenario and house price movements, flagship programmes of the government for the housing sector, the role of primary lending institutions in providing housing credit, the performance of housing finance companies (HFCs), and the outlook for the sector.
In 2015, the Ministry of Housing and Urban Affairs had launched three landmark initiatives: the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the Smart Cities Mission (SCM), and the PMAY-U. These initiatives, launched on June 25, 2015, by Prime Minister Narendra Modi, have collectively transformed urban infrastructure and improved the quality of life for millions of residents across India, the report states.
HFCs have played a pivotal role in facilitating access to housing loans across diverse income segments in India. Housing loans as a percentage of GDP increased from 3.20 per cent in 2001-02 to 6.60 per cent in 2011-12 and further to 11.29 per cent in FY 2023-24.
The share of outstanding housing loans in total loans outstanding for scheduled commercial banks increased to 16.57 per cent in March 2024 from 9.41 per cent in March 2010. HFCs have a dominating presence in the northern and southern parts of the country, the report added.
(IANS)
