In March 2025, New Delhi (Delhi)-based National Housing Bank (NHB), apex financial institution for housing, released the Report on Trends and Progress of Housing in India, 2024 in accordance to provisions of Section 42 of NHB Act, 1987.
- The report provides comprehensive overview about the current housing scenario in India, including house price trends, flagship government programmes in the housing sector, role of Primary Lending Institutions (PLIs) in providing housing credit, performance of Housing Finance Companies (HFCs) and outlook for the sector.
Key Findings:
i.Increase in individual housing loan: As on September 30 2024, individual housing loans stood at Rs 33.53 lakh crore, reflecting growth of 14% during the same period of last year.
ii.Distribution of housing loans among different income groups: Middle-Income Group (MIG) accounted 44% of the total housing loans, as on September 30, 2024.
- It is followed by Economically Weaker Section & Lower Income Group (EWS & LIG) and Higher Income Group (HIG), accounted 39% and 17% of outstanding individual housing loans, respectively.
- Regional Distribution in Finance: Southern (35%), Western (30%), Northern (28%), Eastern (5.4%) , North Eastern States (0.68%).
- Banks account for 81% whereas Housing Finance Companies (HFCs) account for 19% of housing loans.
iii.Disbursement of Housing Loans: During the 1st Half of (H1: April-September) of Financial Year 2024-25 (FY25), individual housing loan disbursements were Rs 4.10 lakh crore while disbursements during FY24 (ended on March 31, 2024) were Rs 9.07 lakh crore.
iv.Growth in Housing Price Index: As per the report, the housing price index i.e. NHB-RESIDEX, which monitors the price movements of residential properties, showed a Year-on-Year (Y-o-Y) growth of 6.8% as against 4.9% during last year.
v.Housing loans (as % of Gross Domestic Product (GDP)): It has increased from 6.60% (2011-12)to 11.29% (2023-24).
- Green buildings: Only 5% of buildings are classified as green
Other Key Points:
i.The report has covered key initiatives of Government of India (GoI) such as: Pradhan Awas Yojana-Grameen (PMAY-G), PMAY-U, Urban Infrastructure Development Fund (UIDF), Affordable Rental Housing Complexes (ARHC) scheme, among others.
ii.The report outlined regional disparities in credit flow and vulnerability to climate-related risks, as some of the key challenges which need to be addressed by the sector.
- It also highlighted technological advancements in construction, digitization of land records, among others as some of the key factors which will provide growth opportunities for the sector.
About National Housing Bank (NHB):
It is a statutory body, established under the NHB Act, 1987 on July 9, 1988.
Managing Director (MD)- Sanjay Shukla
Headquarters- New Delhi, Delhi
