Indian Housing Loan Market Overview

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HOUSING LOAN MARKET IN INDIA

04/15/2023 2

FORMS OF REALTY SECTOR

REALTY SECTOR

RESIDENTIAL SPACE

HOSPITALITY SPACE

Competitive Market with many players

SEZOver 500 SEZ’s have been approved by the

Govt so farMajority of SEZ’s are in IT Sector

COMMERCIAL SPACE

Few players present across India

RETAIL SPACE

Fragmented Market with few National PlayersSOURCE : www.cci.in

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INTRODUCTION

40 years back , old people would bought houses through provident fund etc.

For most of them, taking a loan was an alien concept because of its complex nature and lack of availability.

But now as home owners are more young and aware about the home loan benefits, most of them prefer for taking home loans.

Loan-to-value ratios are substantially higher. And home loans have become an essential part of their lives.

SOURCE : http://www.business-standard.com/article/pf/40-years-ago-and-now-home-loan-a-tale-of-three-institutions-114091400747_1.html

4

DEMAND FOR HOUSING

FY 08 FY 09 FY 10 FY 11 FY 20 E0

20

40

60

80

100

120

140

160

180

200

HOUSING DEMAND IN CRORE

CAGR [E] = 11.64%

SOURCE :http://www.ibef.org

CAGR=7.45%

HOUSING DEMAND IN CRORE

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DEMAND FOR HOUSING ( CAGR)

YEAR DEMAND GROWTH CAGR

FY 08 5010 7.45%

FY 09 5330 6.38

FY 10 5560 4.31

FY11 6680 20.14

FY20 E 18000 169.5 11.64%

SOURCE :http://www.ibef.org

AMOUNT IN Rs CRORE

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DEMAND FOR HOUSING

As per 2013 report of Cushman & Wakefield published, the total new housing demand will be nearly 12 million units in the next five years (2013- 17) and this is based on the estimated growth of population across India .

In 8 major cities in India, demand will be higher than supply by approx.45% .

Chennai is expected to see the highest demand – supply gap with supply falling short by over 80% of the expected demand, while Mumbai is expected to see the least imbalance in demand and supply with demand outstripping by only 5% albeit, most of the supply will be in the HIG category leaving MIG underserviced.

HIG – High Income Group ; MIG – Middle Income Group

SOURCE : http://www.cushmanwakefield.co.in/

04/15/2023 SOURCE : http://www.mapsofindia.com/ 7

INDIAN HOUSING MARKET NEEDS

ONE BEDROOM HOUSE

TWO BEDROOM HOUSE

THREE BEDROOM HOUSE

FOURBEDROOM HOUSE

HOUSE DESCRIPTION PERCENTAGE

ONE BEDROOM HOUSE

250-400 sq.ft 80.2%

TWO BEDROOM HOUSE

450-650 sq ft 10.5%

THREE BEDROOM HOUSE

650-900 sq ft 6.6%

FOUR BEDROOM HOUSE

More than 1000 sq ft 2.7%MARKET NEEDS

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AHMEDABAD PUNE BANGALORE NCR KOLKATA MUMBAI HYDERABAD CHENNAI0

100

200

300

400

500

600

700

800

900

HOUSING DEMAND ANALYSIS 2013-17

CITIES

DEM

AN

D I

N ‘

000 U

NIT

S

DEMAND FOR HOUSING IN BANGALORE

SOURCE : www.ibef.orgg/

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GROWTH IN BANGALORE

Defying the lows witnessed in FY2009 and FY2010, Bangalore’s residential market has rebounded in the last two fiscal years characterized by improved sales volumes and new project launches.

Bangalore is expected to see one of the highest activity in the residential markets in the next five years (2013 – 17). The demand for residential units in the mid and high-end categories is expected to be approximately 413,000 units in the next five years

SOURCE : www.ibef.org

04/15/2023 SOURCE : http://www.rbi.org/ 10

DEMAND OF HOUSING LOAN

Home Loans upto INR 50 Lakhs (for houses valued at INR 65 lakhs) in metros and home loans upto 40 lakhs (for houses valued at INR 50 lakhs) in other places will fall under the category of “affordable housing” by RBI(Metros include Mumbai, New Delhi, Chennai , Kolkata , Bangalore & Hyderabad)

Banks can issue long term bonds with minimum maturity of 7 Years to raise resources for lending to affordable housing.

The pace of growth of home loans declined to 16.4 per cent in November 2014, from 18.1 per cent in the year-ago period, according to Reserve Bank of India data.

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DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR ACQUSITION / CONSTRUCTION (AS ON 31ST MARCH 2013 )

SOURCE : ANNUAL REPORT 2013 OF NHB


UPTO 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L

2012 248 1211 7046 6681 12509 20971

2013 369 1267 9800 8196 16148 31291

2500

7500

12500

17500

22500

27500

32500

AMOUNT IN CRORES

IND

IVID

UA

L

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1%2%

14%

14%

26%

43%

2012

2L 2L-5L5L-10L 10L-15L15L-25L ABOVE 25L

1% 2%

15%

12%

24%

47%

2013

DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR ACQUSITION / CONSTRUCTION (AS ON 31ST MARCH 2013 )


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DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR UPGRADATION [ INCLUDING MAJOR REPAIRS ] (AS ON 31ST MARCH 2013 )


2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L

2012 96 443 694 294 179 89

2013 114 449 872 366 248 136

50

250

450

650

850

AMOUNT IN CRORES

IND

IVID

UA

L

04/15/2023 14

5%

21%

40%

17%

11%

6%

2013

5%

25%

39%

16%

10%

5%

2012


DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR UPGRADATION [ INCLUDING MAJOR REPAIRS ] (AS ON 31ST MARCH 2013 )


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DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR ACQUISITION OF OLD HOUSES [ RESALE ] (AS ON 31ST MARCH 2013 )



2012 18 259 1843 2757 4595 8288

2013 21 311 1976 3097 5641 12285

1000

3000

5000

7000

9000

11000

13000

AMOUNT IN CRORES

IND

IVID

UA

L

04/15/2023 16

0%1%

8%

13%

24%

53%

2013

0%1%

10%

16%

26%

47%

2012


DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL FOR ACQUISITION OF OLD HOUSES [ RESALE ] (AS ON 31ST MARCH 2013 )


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DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL [ SUMMARY](AS ON 31ST MARCH 2013)

PARTICULARS 2012 2013

UPTO 2L 362 505

2L-5L 1912 2027

5L-10L 9584 12649

10L-15L 9732 11659

15L-25L 17,283 22,037

ABOVE 25L 29,348 43,712

TOTAL 68,221 92,589

IN 2012-13 ,HFC’s DISBURSED Rs 92,589 CRORE FOR CONSTRUCTION,UPGRADATION & PURCHASEOF OLD HOUSES (RESALE)


AMOUNT IN Rs CRORES

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DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL [ SUMMARY](AS ON 31ST MARCH 2013 )



2012 362 1913 9583 9732 17283 29348

2013 504 2027 12648 11659 22037 43712

2500

12500

22500

32500

42500

AMOUNT IN CRORES

IND

IVID

UA

L

04/15/2023 19

1% 3%

14%

14%

25%

43%

2012


1%2%

14%

13%

24%

47%

2013

DISBURSEMENTS OF HOUSING LOANS BY HFC TO INDIVIDUAL [ SUMMARY](AS ON 31ST MARCH 2013 )


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COMPARISON OF DISBURSEMENTS OF HOUSING LOAN


2012 20130

100002000030000400005000060000700008000090000

100000

UPTO 2L 2L-5L 5L-10L10L-15L 15L-25L 25L&MORE

92587

68221

Economy & Finance

Indian Housing Loan Market Overview