The real estate has emerged as a key pillar of India’s growth story. The sector, which is also second largest employer in the country, is valued at approximately USD 200 billion in 2021, is projected to reach USD 1 trillion by 2030. Its current contribution of nearly 7% to GDP is forecast to more than double to 15% over the next 25 years. Within real estate, residential segment accounts for nearly three-quarters of the sector’s contribution to GDP.
Notable, in residential segment, close to 70–90% of a property’s value is financed through home loans subject to buyer’s profile. Given this, Housing Finance, commonly referred to as mortgage lending, is one of the most vital tools for financing aspiring homebuyers amid the rising property prices and limited affordability. As property markets mature, and homeownership sentiments deepen, efficient and inclusive assess to housing finance is a critical cog in bridging the demand-supply gap in India. It remains central to sustaining the growth of India’s residential real estate sector which is a cornerstone of the country’s long-term economic narrative.
Against this backdrop, Urban Money’s seminal report ‘Housing Finance – The Quiet Catalyst Driving India’s Property Market’ deep dives into evolving landscape of housing finance, its underlying trends, and what it means for the future of Indian residential real estate.
Some of the key insights observed at Urban Money, India’s largest mortgage marketplace, include:
- India’s retail credit segment is growing steadily, with property-linked loans (Home Loans + Loan Against Property) emerging as the most dominant category.
- Home loans, have witnessed a strong double-digit momentum, with volumes rising 10% and values by 15%, supported by steady demand, stable interest rates, and growing urban aspirations.
- High-value home loans are on the rise with ~21% of home loans disbursed in India’s top cities falling in the above Rs. 1 crore category.
Explore the full findings below in our report:
