Luxury dream: Home loan disbursals shoot up in Gujarat | Ahmedabad News

Amid the growing demand for new homes and luxury residential properties, the disbursals of new home loans have grown by a sizable 25% in the December quarter of FY 2022 compared to the corresponding quarter of FY 2020 – during the pre-Covid period.

AHMEDABAD: Amid the growing demand for new homes and luxury residential properties, the disbursals of new home loans have grown by a sizable 25% in the December quarter of FY 2022 compared to the corresponding quarter of FY 2020 – during the pre-Covid period.
According to data provided by a credit ratings entity, CRIF Highmark, home loan disbursals grew from Rs 12,221 crore in the third quarter (October to December) of FY 2020, just before the pandemic, to Rs 15,476 crore in the corresponding quarter of FY 2022.
The October to December period is a festive time during which property demand soars. After the second wave of Covid-19 ended and markets bounced back after July 2021, overall demand for new homes grew significantly. Demand was backed by low interest rates, the need for better and more spacious homes, and improving consumer sentiment.
“It is clearly a consumer-driven market with people preferring to buy new homes. The lockdown of 2020 did make people realize the importance of good, spacious homes and as a result, the demand improved,” said Ajay Patel, chairman, Credai-Gujarat.
“While a certain segment chose to upgrade to bigger homes, many first-time buyers took advantage of attractive home loan interest rates to invest in their dream homes.” Patel added: “Disbursals of home loans were thus expected to increase.”
With demand going up, new property registrations also rose and an increase in investments was visible in the luxury and premium segment residential real estate.
Tejas Joshi, president, Credai-Ahmedabad, said: “Demand for high-end properties increased because people began seeking homes with better amenities. They want homes that are spacious and well-designed to live comfortably.”
Joshi added: “People are making provisions for working from home and other infrastructure. Therefore, with luxury apartments and projects selling more, the overall ticket size of loans too goes up.”
Joshi went on to say: “Interestingly, we are witnessing keen interest from buyers in the 25-40 age group who typically prefer renting out a place. However, attractive interest rates have lured this section of buyers too into investing in their own homes.”