Ahmedabad: Home loan disbursements above pre-Covid levels | Ahmedabad News

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AHMEDABAD: Surfing on the rising demand for new housing in the aftermath of the Covid-19 pandemic, disbursement of home loans exceeded pre-pandemic levels in 2021-22. According to a report by the Committee of Bankers at State Level – Gujarat, housing finance disbursements increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22 – up by 17% over a two-year period. The 173rd meeting of SLBC was held in Ahmedabad earlier this week.
Even compared to 2020-2021, when housing finance disbursements stood at Rs 23,532 crore, the growth in home loan underwriting was considerable at 12%.
“Interest rates on home loans were very low until March this year and as a result many potential buyers signed deals for new homes. The overall demand in the affordable segment as well as in the mid to high-end homes remained good. Several people also opted for due upgrades, which also increased demand for loans,” a source said.
According to developers, after two years of the pandemic, young people have become actively interested in investing in a new home. Real estate agents have benefited from this new segment of buyers. Industry players suggest that demand has been good across all segments, whether affordable, mid-range or even high-end. Even new project launches remained bullish.
High-end homes are in demand, developers say
Ahmedabad: Riding on the bullish demand for new homes a year after the pandemic, the disbursement of home loans exceeded the pre-pandemic level in the financial year 2021-22.
According to the latest report from the State Level Bankers’ Committee (SLBC), Gujarat, housing finance disbursements increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22, up by 17% over a period of two years. The 173rd meeting of SLBC was held in Ahmedabad earlier this week.
Even compared to 2020-2021, when housing finance disbursements stood at Rs 23,532 crore, the growth in home loan underwriting was considerable at 12%.
Interest rates on home loans were very low until March this year and as a result many potential buyers signed agreements for their new homes. Overall demand, both in the affordable segment and in the mid- to high-end segment, has remained good. Several people have also opted for upgrades, which has also increased the demand for loans,” a senior source told SLBC, Gujarat.
In terms of the number of requests, the demand is almost at the same level as the pre-pandemic levels; however, the amount of disbursements has increased. According to the SLBC report, 2.73 lakh home loan applications were approved in 2021-2022. That’s slightly low compared to the 2.76 lakh home loan applications processed in 2019-20 – the year before the pandemic – indicating the market has rebounded.
Explaining this, Tejas Joshi, Chairman of Credai, Ahmedabad, said: “Young people were more inclined to rent and not buy houses. However, after the pandemic, young people became actively interested in investing in a new home. Real estate agents took advantage of this news. At the same time, with loan interest rates remaining favorable, demand was good in all areas, i.e. in the affordable segment, as well as in the segments intermediate and premium.
Compared to the pandemic year 2020-21, home loan applications processed increased by 13% from 2.40 lakh. According to developers, overall demand for new homes has remained on the rise in 2021-22, especially in the premium segment.
Explaining consumer sentiment, Ajay Patel, Chairman of CREDAI, Gujarat, said, “Over the past year, overall consumer sentiment has remained positive. have also modernized their houses. This is especially true for the fourth quarter when market sentiment remained very positive as earnings and sentiment improved.

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