Now, affordable housing is driving home loan growth
MUMBAI: After years of selling pricey luxury homes that boasted amenities like signature golf courses and jacuzzis, builders finally seem to be moving toward modest apartments to suit middle-class pockets.
A clear indicator of this is the sharp uptick in home loans driven by sales of houses costing below Rs 30 lakh.
The cue for builders to change tack came from this year’s Budget, which offered tempting tax and interest concessions for the affordable housing segment.
This year, almost half of all bank credit comprised loans to housing, given the almost non-existent corporate loan demand.
“What is driving this growth is not high-value property but affordable homes, considering that the corporation’s average loan size is Rs 25.6 lakh. This is the first time in several quarters that HDFC’s average loan size has dropped from Rs 26 lakh,” he said.