In fiscal 2009-10, member banks of the State-Level Bankers’ Committee (SLBC) disbursed fresh home loans of Rs3,786.74 crore to 52,307 applicants, against Rs2,344.42 crore to 46,130 applicants in FY 2008-09
Home loan disbursals in Gujarat have zoomed by a whopping 61% in the financial year 2009-10 compared to the recession-hit 2008-09, even though loan accounts have increased by only 13.39% during the period.
In fiscal 2009-10, member banks of the State-Level Bankers’ Committee (SLBC) disbursed fresh home loans of Rs3,786.74 crore to 52,307 applicants, against Rs2,344.42 crore to 46,130 applicants in FY 2008-09, showing an increase of Rs1,442.32 crore.
The number of home loans accounts went up by 6,177 only in 2009-10.
Increase in real estate prices in Ahmedabad and other parts of the state could be one of the reasons for the rise in loan disbursals.
“Though prices in Ahmedabad are believed to be lower in comparison to other cities such as Bangalore and Pune, Amdavadis do not find it cheaper any more,” said Deepak Patel, secretary of Gujarat Institute of Housing and Estate Developers (GIHED). Skyrocketing land prices in the city are also making property prices dearer, he said.
Mukesh Kumar Jain, general manager of Dena Bank and convener of SLBC, says that transaction values have gone up in accordance with improved market sentiment. He said that during 2008-09, loan disbursals were more for lower-value homes because people were cautious on account of slowdown in the economy.
“People were reeling from global turmoil and hence quite apprehensive of borrowing money. However, with the economic situation improving, demand in the mid and higher segment of housing has also improved. People have stretched their budgets by around Rs5 lakh. Those who were buying home in the range of Rs20-25 lakh, have started buying home ranging around Rs30 lakh,” said Jain.
It has also been observed that more people are opting for luxurious homes with increasing income level. The number of luxurious apartment and bungalow schemes coming up in the city has increased. Now there are quite a few housing schemes in the range of Rs1 crore to Rs4.5 crore. “With standard of living going high, customers are showing willingness to pay more rather than compromise on design, elevation, location, construction quality and other aspects,” said Patel.
Chief general manager of the State Bank of India, Gujarat circle, P Nanda Kumaran, says, “In Gujarat, 80% applications for home loans are for houses costing less than Rs30 lakh. Of it, 20% demand is for houses for weaker sections. Even today, people are buying houses for less than Rs5 lakh in suburban areas of Ahmedabad and other rural areas. The demand for premium houses, costing more than Rs30 lakh, is very low in Gujarat.”
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}