Housing finance market may double to Rs 81 lakh cr in 5 years
Mumbai: India's housing finance market could more than double in value to '81 lakh crore in the next five years, according to a report by CareEdge Ratings. The ratings firm said the growth will be driven by robust structural elements and favourable government incentives, making housing finance an attractive asset class for lenders. India's housing finance market is valued at '33 lakh crore.
CareEdge Ratings said the country's residential properties market remains buoyant, a key driver of the housing finance industry, having seen absolute growth of 74% since 2019 to 460,000 units in 2024.
Between FY21 and FY24, banks grew at a compound annual growth rate of 17% in the housing loan space, while housing finance companies (HFCs) grew by 12%.
During this period, banks have dominated the housing loan market with a share of 74.5% (as of March 31, 2024), facilitated by cost of funds advantage, reach, portfolio buyouts and co-lending arrangements. On the other hand, the market share of HFCs has been stable at 19% (as of March 31, 2024), and this trend could continue, according to CareEdge Ratings.
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