Trends in India’s Housing Sector for 2024

March 13, 2025

The National Housing Bank (NHB) has recently published its Report on Trends and Progress of Housing in India, 2024. This report provides an in-depth analysis of the housing market, house price trends, and the impact of government initiatives on housing finance. The report marks growth in individual housing loans and identifies key challenges in the sector.

Current Housing Market Overview

As of September 30, 2024, individual housing loans outstanding reached ₹33.53 lakh crore. This marks a robust 14% growth compared to the previous year. The distribution of these loans shows that Economically Weaker Sections (EWS) and Low-Income Groups (LIG) account for 39%, while the Middle-Income Group (MIG) represents 44%, and High-Income Groups (HIG) make up 17%.

Loan Disbursements and Trends

During the half-year ending September 2024, housing loan disbursements totalled ₹4.10 lakh crore. For the entire fiscal year ending March 2024, disbursements reached ₹9.07 lakh crore. This growth reflects the increasing demand for housing finance in India.

Housing Price Index

The Housing Price Index (NHB-RESIDEX) recorded a year-on-year increase of 6.8% for the quarter ending September 2024. This is an increase from 4.9% during the previous year, indicating rising property values across the country.

Government Initiatives and Programmes

The report discusses several key government initiatives aimed at improving housing accessibility. These include the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), Pradhan Mantri Awas Yojana-Urban (PMAY-U), and the Urban Infrastructure Development Fund (UIDF). These programmes aim to enhance housing availability and affordability.

Challenges in Housing Finance

Despite the positive trends, the report identifies regional disparities in credit distribution. Southern, Western, and Northern states dominate housing finance disbursements. In contrast, Eastern and Northeastern regions face low credit penetration. This disparity presents a challenge for Housing Finance Companies (HFCs).

Role of Housing Finance Companies

HFCs play important role in the housing sector by catering to diverse homebuyer needs. They offer flexible eligibility criteria and efficient service, which are essential for expanding access to housing finance. However, the limited branch network in underserved areas hinders their effectiveness.

Future Outlook for the Housing Sector

The outlook for the housing sector appears optimistic. The government’s budget announcements regarding PMAY 2.0, along with urbanisation and digitisation trends, are expected to drive growth. Technological advancements in construction and the digitisation of land records will further facilitate sector development.

About National Housing Bank (NHB)

The National Housing Bank (NHB) is the apex agency that supports and promotes Housing Finance Companies (HFCs) in India
This All-India Financial Institution (AIFl) is wholly owned by the Indian government
It supervises HFC while the RBI regulates them
The idea of NHB came from the National Housing Policy of 1988 to create a key institution for housing finance. It was officially established on July 9, 1988, under the National Housing Bank Act, 1987.

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