AHMEDABAD: Increase in affordability, investment by non-Gujaratis in real-estate and rise in number of affordable housing projects have propelled demand for home loans in third quarter of the current fiscal. In October- December quarter in 2015-16, 21% more beneficiaries procured housing loans from banks across the state in comparison to the same period last year.
According to the latest report by State Level Banker’s Committee (SLBC), fresh loans worth Rs 2,811 crore have been granted to 20,091 beneficiaries during October- December 2015 under direct housing finance, in comparison to loans worth Rs 1,509.79 crore granted to 16,639 beneficiaries in the same quarter last year. In terms of amount disbursed, the growth is of 86% year-on-year.
“The affordability among the people is on higher side. Everybody has begun to understand that it is the buyers’ market. Also amid global slowdown, the overall economic growth of Gujarat as a state has been consistent which has pushed investment in housing sector,” said Jaxay Shah, president-elect, CREDAI (Confederation of Real Estate Developers’ Associations of India).
Shah said, “There has been a rise in number of non-Gujaratis who are looking to invest in real estate in the state. Gujarat is being seen as a peaceful place by these investors. Also in the last two years, the state government has given a special push to affordable housing sector.” Shah said that developers and builders have adopted ‘less profit, more business’ approach which has increased the sales.
“Real Estate developers have brought down the prices over the last one year. This has pushed people into going for home loans,” said financial consultant Aspy Bharucha. In comparison to loans disbursed to number of beneficiaries in 2014-15 which stood at 64,414, in 9 months of 2015-16, around 55,277 beneficiaries have taken home loans, achieving 85% of the last year disbursement.
Credits ET Realty