Home loan disbursements in Ahmedabad are higher than before COVID.

State Level Bankers Committee-Gujarat study says funding disbursements increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22 . Increase in home loan uptakes was a remarkable 12% against 2020-21, when housing finance disbursements were at Rs 23,532 crore .

AHMEDABAD: In the aftermath of the Covid-19 pandemic, demand for new homes has increased to levels pre-pandemic levels in 2021-22.According to a State Level Bankers Committee-Gujarat study, funding disbursements increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22, up 17% over a two-year period.Earlier this week, the 173rd SLBC meeting was held in Ahmedabad.The increase in home loan uptakes was a remarkable 12% against 2020-21, when housing finance disbursements were at Rs 23,532 crore.

Demand in the affordable and medium-to-premium sectors of homes continued to rise.According to a source, several people also accepted upgrades, which increased the need for loans.After two years of pandemic, youth have taken an active interest in buying a new home, according to developers.This new generation of buyers came to the benefit of Realtors.

Even new venture launches were positive.Developers Ahmedabad say homes in a premium category are in high demand.The amount of mortgage payments has reached pre-pandemic level in fiscal 2021-22, following the pandemic.The disbursals under housing finance increased from Rs 22,504 crore in 2019-20 to Rs 26,299 crore in 2021-22, up 17% over a two-year period, according to the new report by the State Level Bankers Committee (SLBC).

Even when housing finance expenditures amounted to Rs 23,532 crore in 2020-21, the increase in home loan uptakes was a remarkable 12%.Before March this year, interest rates on home loans were very low, and a great deal of potential buyers signed offers for their new homes.Overall demand in both the affordable and the middle-to-premium segment of homes remained steady.According to a top source at SLBC, Gujarat, many people also applied for upgrades, which increased demand for loans.

In 2021-22, 2.73 lakh home loan applications were accepted, according to the SLBC survey.This is marginally less than the 2.76 lakh applications of home loans processed in 2019-20, the year before the pandemic, showing that the market has rebounded.Tejas Joshi, president, Credai, Ahmedabad, said, Youngsters are more interested in rentals than buying houses.However, youth has shown an avid interest in investing in a new home after the pandemic.

At the same time, with loan interest rates remaining competitive, demand was solid across the board, i.e., in the affordable segment as well as in the mid-segment and premium segments.Home loan applications dropped 13% from 2.40 lakh to 3.40 lakh in comparison to the pandemic year 2020-21.According to developers, the overall demand for new homes remained stable in 2021-22, particularly in the premium segment.Ajay Patel, chairman of CREDAI, Gujarat, said, The overall consumer sentiment has remained positive in the last year.

This was particularly true in the fourth quarter, where the market mood remained very positive as incomes and sentiments increased.