Left Menu
Development News Edition

Growth in home loans higher in non-metros: JLL

PTI | New Delhi | Updated: 10-06-2019 21:44 IST | Created: 10-06-2019 21:32 IST
Growth in home loans higher in non-metros: JLL
Image Credit: Flickr

The share of four metro cities -- Delhi, Mumbai, Kolkata and Chennai -- in outstanding home loans dropped to 16 per cent in 2017-18 from 22 per cent in 2012-13 as growth in loan book was higher in small towns, according to property consultant JLL India. In its latest report, JLL said that Tier II & III cities across 50 districts of the country exhibited higher Compounded Annual Growth Rate (CAGR) of outstanding home loans, ranging from 15-36 per cent during the period between 2012-13 and 2017-18 as against 8-12 per cent observed across districts comprising leading four metros.

India's home loan market grew from Rs 4.6 trillion to Rs 9.7 trillion, exhibiting a CAGR of 16 per cent during the period under review, the consultant said based on analysis of RBI home loan data. "The home loan data demystifies the common perception that districts comprising the top leading cities, Mumbai, Delhi, Chennai and Kolkata, drive residential real estate growth," JLL India CEO and Country Head Ramesh Nair said.

The data clearly indicates that with development focus gradually reaching to peripheral regions, tier II and III cities of the country have attracted the homebuyers' interest, he added. "The share of these top four districts to the overall outstanding home loans in the country has dropped to 16 per cent from 22 per cent during the same period. In comparison to this, the share of rest of India has increased to 84 per cent from 78 per cent," Nair said.

The consultant attributed factors such as improved connectivity, infrastructure growth, better education and health care facilities that supported the growth of peripheral cities. The housing sector has been reaping the benefits of the growth story, it added.

Real estate developers in these cities have also been adopting the latest construction and development trends and have been able to provide homes at competitive rates mainly due to lower land and manpower costs, Nair said. The policy initiatives like the Smart City Mission, development of industrial corridors, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), metro rail projects, Prime Minister Awas Yojana (Urban) and Make in India, have added value to the overall buying sentiments within these Tier II-III markets, said Samantak Das, Chief Economist and Head of Research, JLL India.

"The impact of these national-level projects is expected to be long term and will make these cities more attractive destinations for various industries as well as residential real estate. The trend is prominently visible in the peripheral markets of top metro cities," Das added.


TRENDING

OPINION / BLOG / INTERVIEW

Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

Videos

Latest News

Libyan forces set conditions for lifting oil blockade

Forces loyal to a Libyan commander said they will only allow the reopening of oil fields and terminals once a mechanism has been set up to fairly distribute revenue across the country, which is split between rival, warring factions. Powerfu...

Worker aiding federal execution prep has positive virus test

The federal Bureau of Prisons said Sunday that a staff member involved in preparing for the first federal executions in nearly two decades has tested positive for coronavirus. The Justice Department said the development will not mean an add...

17-year-old raped in Kolkata

A 17-year-old girl was allegedly raped by a man at an under-construction building in the citys New Town area, police said on Sunday. The man, who claimed to be a friend of a close relative of the girl, was arrested on Sunday, a senior polic...

Poland's Duda slightly ahead in presidential vote -exit poll

President Andrzej Duda was marginally ahead in Polands presidential election, an exit poll showed on Sunday, in a result with profound implications for relations with the rest of the European Union. Duda, an ally of the ruling nationalists ...

Give Feedback