India’s Housing Loans Surge 14% to Rs 33.53 Lakh Crore: NHB Report

India’s individual housing loans outstanding reached Rs 33.53 lakh crore as of September 30, 2024, marking a robust 14% year-on-year growth, according to a report released by the National Housing Bank (NHB). The surge underscores the steady expansion of the country’s housing sector.

The Ministry of Finance, citing NHB data, highlighted that housing loan distribution across income groups stood at 39% for the Economically Weaker Sections (EWS) and Lower Income Group (LIG), 44% for the Middle Income Group (MIG), and 17% for the High-Income Group (HIG).

Strong Disbursement and Rising Housing Prices

During the first half of FY 2024-25, individual housing loan disbursements amounted to Rs 4.10 lakh crore, while the full financial year 2023-24 saw total disbursements reaching Rs 9.07 lakh crore.

The NHB-RESIDEX Housing Price Index reflected a year-on-year increase of 6.8% in the September 2024 quarter, up from 4.9% in the corresponding period last year. The steady rise in housing prices indicates sustained demand in the real estate sector.

Key Government Initiatives and Challenges

The NHB report outlines various initiatives undertaken by the Government of India to boost the housing sector. These include:

Pradhan Mantri Awas Yojana (PMAY-G & PMAY-U) – aimed at providing affordable housing.

Urban Infrastructure Development Fund (UIDF) – to enhance urban housing facilities.

Affordable Rental Housing Complexes (ARHC) Scheme – promoting rental housing for migrants and economically weaker populations.

However, the report also sheds light on key challenges, such as regional disparities in credit flow and climate-related vulnerabilities. It emphasizes the role of technological advancements in construction, land record digitization, and transit-oriented development as critical growth drivers.

A Positive Outlook for the Housing Sector

The Finance Ministry, summarizing the NHB report’s observations, projected a promising outlook for the housing sector. It attributed this optimism to budgetary allocations for PMAY 2.0, rapid urbanization, and policy-driven initiatives aimed at boosting affordability and accessibility.

As the primary financial institution overseeing the housing sector, the NHB—established in 1987 under an Act of Parliament—continues to play a crucial role in regulating and licensing housing finance companies across the country.

With rising homeownership aspirations, government-backed initiatives, and increasing investments in infrastructure, the Indian housing sector appears poised for sustained growth in the coming years.