National Housing Bank Releases "Trends and Progress of Housing in India, 2024" Report

This report underscores the dynamic evolution of India's housing landscape and the critical role of housing finance in driving economic progress and social stability.

The National Housing Bank (NHB), a statutory body under the Government of India, has published the Report on Trends and Progress of Housing in India, 2024 in accordance with Section 42 of the National Housing Bank Act, 1987. This comprehensive report provides a detailed analysis of the housing sector, including trends in house prices, government initiatives, the role of financial institutions, and emerging opportunities and challenges in the sector.

Key Insights from the Report:

Housing Loan Growth:

As of September 30, 2024, total outstanding individual housing loans stood at ₹33.53 lakh crore, registering a 14% year-on-year growth.

Loan distribution by category:

Economically Weaker Section (EWS) & Low-Income Group (LIG): 39%

Middle-Income Group (MIG): 44%

High-Income Group (HIG): 17%

Loan Disbursements:

Housing loans disbursed in the first half of FY 2024-25 amounted to ₹4.10 lakh crore.

Annual housing loan disbursements for FY 2023-24 totaled ₹9.07 lakh crore.

House Price Trends:

The Housing Price Index (NHB-RESIDEX) recorded a 6.8% year-on-year growth for the quarter ending September 2024, compared to 4.9% in the previous year.

Government Initiatives: The report highlights major Government of India (GoI) schemes that influence the housing sector:

Pradhan Mantri Awas Yojana - Gramin (PMAY-G) and Pradhan Mantri Awas Yojana - Urban (PMAY-U).

Impact assessment of PMAY-U and the future roadmap.

Urban Infrastructure Development Fund (UIDF) to promote infrastructure-linked housing development.

Affordable Rental Housing Complexes (ARHC) scheme to support migrant workers and low-income groups.

Challenges & Opportunities:

Challenges Identified:

Regional disparities in housing finance availability.

Climate-related vulnerabilities affecting housing developments.

Opportunities for Growth:

Technological advancements in construction and real estate finance.

Increased digitization of land records, ensuring transparency and efficiency.

Transit-oriented development and rapid urbanization driving housing demand.

Future Outlook:

The housing sector outlook remains positive, bolstered by continued government support through PMAY 2.0, urbanization policies, transit-oriented development, and enhanced digital governance in housing finance and real estate. Innovations in construction technology and sustainable development are expected to play a pivotal role in shaping the sector’s growth trajectory.

This report underscores the dynamic evolution of India's housing landscape and the critical role of housing finance in driving economic progress and social stability.