India’s housing finance market is set for remarkable growth, with its value projected to double over the next five years, rising from Rs. 33,00,000 crore (US$ 378 billion) to Rs. 81,00,000 crore (US$ 928 billion), according to a report by CareEdge Ratings. This expansion is fuelled by robust structural drivers, favourable government policies and an increasing preference for higher-value homes. The report notes a strong compound annual growth rate (CAGR) in the sector, with banks achieving 17% growth and housing finance companies (HFCs) growing at 12% between 2021-22 and 2023-24. By March 2024, banks maintained a commanding 74.5% share of the housing loan market, benefiting from lower costs, broad distribution networks and strategic portfolio acquisitions. Meanwhile, HFCs held a stable 19% market share, with their loan portfolio surging by 13.2% in 2023-24 to Rs. 9,60,000 crore (US$ 110.02 billion). Looking ahead, HFCs are expected to continue their upward trajectory, with annual growth projected at 12.7% in 2024-25 and 13.5% in 2025-26. India’s housing finance market is set for remarkable growth, with its value projected to double over the next five years, rising from Rs. 33,00,000 crore (US$ 378 billion) to Rs. 81,00,000 crore (US$ 928 billion), according to a report by CareEdge Ratings. This expansion is fuelled by robust structural drivers, favourable government policies and an increasing preference for higher-value homes. The report notes a strong compound annual growth rate (CAGR) in the sector, with banks achieving 17% growth and housing finance companies (HFCs) growing at 12% between 2021-22 and 2023-24. By March 2024, banks maintained a commanding 74.5% share of the housing loan market, benefiting from lower costs, broad distribution networks and strategic portfolio acquisitions. Meanwhile, HFCs held a stable 19% market share, with their loan portfolio surging by 13.2% in 2023-24 to Rs. 9,60,000 crore (US$ 110.02 billion). Looking ahead, HFCs are expected to continue their upward trajectory, with annual growth projected at 12.7% in 2024-25 and 13.5% in 2025-26. The shift toward larger loan sizes reflects the growing demand for premium homes in India’s evolving real estate landscape. Source: IBEF Disclaimer:The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness and usefulness..

Source: IBEF

Disclaimer:

The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness and usefulness.