Rising home loan offtake bodes well for affordable housing

The rising home loan consumer sentiment and growing demand for low and  medium ticket  home loans , spells good times for affordable and mid-segment housing.  

 According to Magicbricks H1 Home Loans Consumer Study, there has been a 26% rise in home loans in H12021 vis a vis H2 2020. The rise in demand for balance transfers stands at 42% in the first half of 2021 against H2 2020. Loan against Property (LAP) has also seen a 20% rise in demand in the first half of this year. Home loan seekers in tier 1 cities opted for home loan ticket size of Rs 36 lakh in the first half of last year while in tier 2 cities, the most searched home loan ticket size was Rs 26 lakh. The LAP ticket size in tier 1 cities was Rs 32 lakh and for tier 2 cities , it was Rs 23 lakh. Similarly, the most sought after BT for tier 1 cities was Rs 26 lakh while for tier 2 cities, it was Rs 18 lakh. cAbout 50% borrowers opted for less than 15 year home loan tenure. Hyderabad, Pune, Ahmedabad, Mumbai and Delhi are top tier 1 cities in terms of maximum demand for home loans whereas in tier 2 cities, Jaipur, Lucknow, Indore, Agra, Patna figure among the top . 

 Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate and Housing, “This report clearly establishes that the preferred choice of home loan seekers is for affordable and mid- priced homes. The survey findings are in sync with ground reality of residential market which has shown lot of resilience with regard to demand, despite pandemic. This has been largely possible due to health and safety reasons and extra space for home office due to WFH, besides steady low home loan rates and range bound property prices. And now with pandemic effect dying down, one should see still greater demand for home loans in the coming festive season.

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