Report: 71% of house loans in Gujarat were taken out in Q3FY24.

AHMEDABAD: With the dramatic increase in home loan disbursals and the number of applicants, many people in the state are starting to fulfill their dream of owning the house of their dreams. D

emand for homes in both the budget and luxury categories has been fueled by rising disposable incomes and increased aspirations.

According to the State Level Bankers’ Committee (SLBC) – Gujarat’s most recent report, house loan disbursals in the December quarter of FY 2024 were Rs 18,967 crore, a 71% increase over the same period the previous year. Since FY 2020, this is the largest disbursal that has occurred in the previous five years.

The increase in disbursals, according to bankers, can be attributed to the growing demand for residential real estate and the merging of HDFC and HDFC Bank, which has steadily increased the housing finance portfolio over the last three quarters.

“There is undoubtedly a strong demand for new dwellings. It is a tax-saving alternative in addition to being a wise investment. Certainly, well-paid young professionals are making an investment in purchasing their own homes.

These are some of the main drivers of the increase in housing finance disbursals. A senior official from SLBC Gujarat requested anonymity. “In the meantime, the merger of HDFC and HDFC Bank has added a fresh chunk of portfolio of disbursals as is reflected in the past three quarters,” the official stated.

In an update on its home loan business in India, HDFC Bank stated that following the merger, the bank’s market share has increased by roughly 18% to 20% on incremental disbursals.

In the six months following the merger, it has demonstrated strong and steady double-digit year-over-year growth throughout its home loan business. A broader distribution network has contributed to the increase in sales turnover.

Additionally, there has been a 67% increase in the number of home loan takers from 1.29 lakh in the third quarter of FY 2023 to 2.16 lakh in the same time this fiscal year. Experts in the real estate industry credit the surge to positive sentiment and strong demand for products in the premium market.

Experts in the real estate industry credit the surge to positive sentiment and strong demand for products in the premium market.

The executive director of Knight Frank India, Balbir Singh Khalsa, stated: “Primary sales in Ahmedabad have doubled over the last two years, accompanied by a consistent rise in prices.

One of the main sources of funding for homebuyers is home loans, and the significant increase in disbursals is consistent with the market’s activity and interest from home buyers.

Furthermore, market volumes have been driven by the premium sector products’ or higher value flats’ sales rise, which is subsequently increasing bank disbursals even more.”

Dhruv Patel, president of Credai Ahmedabad, expressed a similar opinion when he stated, “Over the next few quarters, there will be a positive demand for residential real estate.” Even the supply of new schemes is increasing in response to demand. There is a strong demand for both expensive and well-located properties.”

Additionally, experts predict a steady demand until 2024. “Homebuyer interest continues to remain strong and should be able to sustain the demand in 2024 especially as inflation eases and with interest rates expected to taper off and possibly reduce during the year,” according to an industry professional.