Growth In Gujarat Housing Loans Almost Doubled To 88% In A Year
Growth in Gujarat housing loans almost doubled to 88% in the fiscal 2017-18 compared to 42.4% in 2016-17, according to the report of State Level Bankers Committee (SLBC) for the January-March quarter of fiscal 2017-18.
Bankers disbursed Rs 25,837 crore during fiscal for Gujarat housing loans. Realtors attribute the acceleration to the demand from the affordable sector. With the central government relaxing carpet area norms for affordable housing and banking regulator also increasing the loan amount for the sector, realtors say the growth will continue in current fiscal as well.
CMD of Sheetal Infrastructure said that it is affordable housing segment, which is witnessing real demand from the consumer. The demand is from homes the price bracket of Rs 20-50 lakh. In costlier houses, there are no incentives from the government. Even investors have exited from this segment.
Realtors are optimistic that the growth momentum will continue in subsequent quarters of the current fiscals as well following the recent twin booster dose by the Reserve Bank of India (RBI) and Ministry of Housing and Urban Affairs (MoHUA).
There is interest subvention of Rs 2.77 lakh for affordable houses. Realtors get 7% benefit in Income Tax. All these are being passed on to the buyers, which is fuelling the demand. These are the real needy buyers, not the investors. With all these benefits, they are thinking why to pay rent when you can own a house, said MD of Vijay Shah Builders.
MoHUA on Tuesday raised the carpet area for the MIG-1 scheme from 120 sq mt to 160 sq mt and for the MIG-2 scheme from 150 sq mt to 200 sq mt under the Credit-Linked Subsidy Scheme (CLSS).
In the previous week, the RBI had raised the loan limits under Priority Sector Lending (PSL) from Rs 20 lakh to Rs 25 lakh in non-metro cities and from Rs 30 lakh to Rs 35 lakh in metro cities.
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