Surge in housing loans reflects strong growth in India’s housing market

financialexpress.com:

The Reserve Bank of India’s latest data on ‘Sectoral Deployment of Bank Credit’ has unveiled a remarkable trend in the housing sector. With a substantial surge in outstanding loans over the past two financial years, the data underscores the burgeoning growth of India’s residential real estate market and the escalating demand for homes nationwide.

According to the Reserve Bank’s data, credit outstanding to the housing sector, primarily comprising home loans, has increased significantly by Rs 10 lakh crore during the last two years to a staggering Rs 27.22 lakh crore as of March 2024, marking a noteworthy rise from Rs 17.26 lakh crore recorded at the end of March 2022.

The surge in housing sector loans reflects not only a robust growth trajectory but also indicates a growing appetite for homeownership among Indian consumers. As economic conditions stabilize and consumer confidence rebounds, individuals and families are increasingly opting to invest in residential properties, leveraging the availability of attractive financing options.

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Commenting on this, Aakash Ohri, Jt Managing Director & Chief Business Officer, DLF Ltd, said, “There is an unprecedented surge in the demand for homes, which has reached an all-time high in the past two years, particularly in the aftermath of COVID. This surge underscores a fundamental shift in people’s perception of homeownership, where the value of having a place to call home has become more apparent than ever before. Residential real estate has not only served as a sanctuary for end-users but has also emerged as an attractive investment avenue. The substantial returns offered by residential