Booming Residential Market Drives Housing Finance

P Balaji, MD, Aptus Value Housing Finance

Reserve Bank of India’s recent o.25 percent repo rate cut would support the net interest margin (NIM) expansion and would further boost affordable housing demand. With housing shortage being particularly acute in Tier-2 and Tier-3 cities, the demand in this segment. In view of this, we are confident of achieving 30 percent annual growth in housing finance over the next 3-4 years.

Geeta Cainani, Associate Director, CareEdge Ratings

Presently, the residential market is witnessing increasing growth in premium housing. As a result of that, there is a gradual rise in the proportion of Assets Under Management (AUM), of housing finance companies. With ticket sizes in the INR 30-50 lakh band. This aligns well with the premiumisation trend seen in the residential property market.

Ashok Kapur, Chairman, Krisumi Corporation 

Housing sector’s strong growth path fuelled by rising homeownership aspirations is well reflected in NHB’s data showing 14% increase in individual housing finance. Amidst government initiatives of PMAY and infra development, home ownership is becoming more accessible. As cities grow, homebuyers are prioritizing well-planned, well-connected communities that enhance their lifestyle and long-term investment value. This trend is expected to continue, driving demand for homes and thereby boosting housing finance.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Limited

The NHB report has reinforced that the mid-income group is becoming the backbone of the housing sector, making up 44% of outstanding individual housing loans and reflecting strong desire for homeownership. Middle-income buyers are looking for well-designed homes in prime locations that offer quality and convenience. This trend is expected to continue, giving a boost to housing finance sought by homebuyers.

Garvit Tiwari, Director & Co-Founder, InfraMantra

This year’s budget will contribute to the growth of housing finance. The exemption of tax on income up to INR 12 lakh, will increase housing demand. In the last few years, residential real estate demand has been positively impacted by massive infra development across cities. The greater emphasis on urban rejuvenation and infra development in the budget, would   give a boost to housing supply and sales, in turn expanding the housing finance market.