According to bankers and developers, the demand for new homes has increased significantly over the past year and as a result, housing finance loan disbursements have increased.
“Interest rates offered by banks on home loans are currently at their lowest,” a senior source told SLBC-Gujarat. “That, coupled with the need for new homes, has boosted demand significantly, leading to higher housing finance disbursements.” The source added: “Disbursements also increased due to an increase in construction activity. Loans are disbursed as construction progresses. The source went on to say, “Last year many sites were closed during the lockdown and as a result loans went undisbursed. This year, not only has construction activity accelerated, but also new demand has opened up.
Even the developers have suggested that demand has increased significantly. According to data from the Gujarat Real Estate Regulatory Authority (GujRERA), around 17,444 new properties were registered in Gujarat in 2021-22 till date compared to 18,949 properties last year.
Developer estimates indicate that there is at least a 15% increase in new home sales in affordable, upscale and luxury residential developments.
“Demand for residential property has remained phenomenally good,” said Ajay Patel, chairman of Gihed. “After the pandemic, people are looking to upgrade their homes and as a result, overall demand is bullish.” Patel added, “With a large number of multinational companies investing here, more and more professionals are migrating to Gujarat, so new homes will experience additional demand.”