Home »  News »  India

New home loan accounts dip by 38% in Gujarat

Monday, 5 November 2012 - 3:27pm IST | Place: Ahmedabad | Agency: dna

From April to June 2011, banks disbursed home loans to 23,241 account holders, but to only 14,329 in same period this year.

The real estate sector has been under pressure for nearly a year and this is reflected in the fresh home loans disbursed by banks in the quarter ended June 2012. The number of new home loan accounts fell by 38% in June quarter this year over the same quarter in 2011. However, builders expect demand to rise in the current quarter.

Member banks of State Level Banking Committee (SLBC) had disbursed Rs854.55 crore to 23,241 account holders from April to June 2011. But this year in the same three months, the banks disbursed Rs816.31 crore as fresh home loan to 14,329 account holders. This shows a 38% year-on-year dip in number of new home loan accounts.

When compared with the figures for the quarter ending March 2012, the number of new home loan accounts has gone down by 29% while disbursement has dipped by 33%. The member banks had disbursed Rs1223.82 crore to 20,146 accounts in March 2012 quarter.
The fall in number of new home loan accounts means decline in sale of new residential properties in the city. Realtors also accept that market conditions are bad.  Despite the slowdown in other realty markets of the country, the Gujarat real estate market was doing quite well till January 2012.

Hence the number of new home loan accounts had grown till the March 2012 quarter. However, after that bookings declined and this was reflected in the falling number of new home loan accounts, said sources.

Realtors blame the current economic situation, particularly high inflation, for the crisis in the realty market.

“No major decision is being taken and this has resulted in continuous increase in commodity prices. This, in turn, has resulted in higher input costs for developers. Moreover, commodity prices also affect the common people and their purchasing power,” said Rushabh Patel, president of Gujarat Institute of Housing and Estate Developers (GIHED).

The sources also said that figures for the September 2012 quarter may also reveal further decline in new home loan accounts but the situation might improve in the December quarter.

According to Patel, in the last two quarters there was demand in the middle income segment while high-end residential property was under pressure.
“However, demand for residential properties in the range of Rs60 lakh-Rs80 lakh has increased after the recent GIHED property show,” said Patel.

Jump to comments

Recommended Content