Despite Pandemic, Growing Demand For Housing Among Lower Income And Middle Income Groups: NHB
The housing finance sector has maintained a positive growth despite the covid-19 pandemic induced slowdown, individual housing loans registered an Y-o-Y growth of 8.5 per cent and HFCs (Housing Finance Companies) registered an Y-o-Y growth of 3 per cent as per the National Housing Board (NHB) report in September 2020.
Report said, affordable housing is backed by government policies, India’s rapid urbanisation and growing demand, the pandemic has shifted house buyers attention to affordability, there will be a further demand for affordable houses, as buyers will rationalise their quantum of investments, overall India holds a conducive environment for affordable housing.
India’s housing finance market is one of very important contributor to GDP growth and overall share of individual housing loans of HFCs and banks combined to GDP at market prices stood at 9.9 per cent at the end of 2019-20, with an outstanding of over ₹20-lakh crore.
The report titled ‘Trend and Progress of Housing in India 2020’ said, the rising refinance offtake and sanctions by HFCs indicate housing demand is back in low and middle class segments, The Hindu Business Line reported.
The report has suggested state governments to waive off stamp duty and other registration charges for affordable houses, which will enable more people purchase affordable house units, which will compensate for any revenue foregone by state governments.
With opening up of economy, the housing finance activity is recovering, we noticed distinct green signs in housing finance sector, the month on month improved credit offtake from HFCs.
HFCs disbursed home loans during September 2020 at rate of 105 per cent compared to September 2019, NHB finance disbursements in the period April to September 2020 registered an exceptional growth of 263 per cent at Rs. 24,947 crore, in comparison to Rs. 6,869 crore during period April 2019 to September 2019.