National Housing Bank releases 2024 report on housing trends in India

The National Housing Bank (NHB) has released its Report on Trends and Progress of Housing in India, 2024, highlighting the current state of the Indian housing sector. This report, published under Section 42 of the National Housing Bank Act, 1987, provides an in-depth analysis of housing market trends, government initiatives, home loan performance, and sectoral challenges.

Key findings of the report

• Growth in housing loans: As of September 30, 2024, the total outstanding individual housing loans stood at ₹33.53 lakh crore, reflecting a 14% growth compared to the previous year.
• Loan distribution across income groups:
  • Economically Weaker Section (EWS) & Lower Income Group (LIG): 39% of total outstanding home loans.
  • Middle-Income Group (MIG): 44% of total loans.
  • Higher-Income Group (HIG): 17% of total loans.
• Loan disbursements:
  • Between April 2024 and September 2024, banks and housing finance institutions disbursed ₹4.10 lakh crore in home loans.
  • In the full financial year ending March 31, 2024, total home loan disbursements reached ₹9.07 lakh crore.
• Housing price growth: The Housing Price Index (NHB-RESIDEX) recorded a 6.8% increase in Q2 FY 2024-25, compared to 4.9% in the same period last year.

Government initiatives supporting housing growth

The report also covers major Government of India (GoI) housing programs, including:

• Pradhan Mantri Awas Yojana (PMAY-Urban & PMAY-Gramin)
• Affordable Rental Housing Complexes (ARHC) scheme
• Urban Infrastructure Development Fund (UIDF)
• Impact assessment of PMAY-U

Challenges and future opportunities

• The report highlights regional disparities in housing credit availability and climate-related risks as key concerns for the sector.
• It also identifies technological advancements in construction, digitization of land records, and urban development policies as drivers of future growth.

Outlook for the Indian housing sector

The NHB report forecasts a positive growth trajectory for the housing market, supported by:

• PMAY 2.0 and new budget allocations
• Urbanization and transit-oriented development
• Increased use of technology in housing finance and construction

With a mix of government support, rising housing demand, and improving affordability, the Indian housing sector is expected to expand steadily in the coming years.