Statsguru: Are luxury homes fuelling the surge in home loan growth?

More than 58 per cent of the IHLs that HFCs disbursed in 2023-24 were more than ₹25 lakh in size, up from 54.34 per cent in 2021-22

India’s residential real estate market is witnessing a boom amid sustained and robust housing demand and the consequent price rise. In particular, the demand for high-end housing properties has continued to be stable, with Indian homebuyers gravitating towards luxury.

 

According to the National Housing Bank’s (NHB) Residential Index (Residex), home prices at the end of September 2024 were 38.33 per cent higher than 2017-18. Prices of under-construction properties were up 42.95 per cent (Chart 1).

 

 

The share of outstanding individual housing loans (IHLs) of scheduled commercial banks (SCBs) and housing finance companies (HFCs) in gross domestic product