Mumbai, March 5 (IANS). According to a report released on Wednesday by CARAM Ratings, the Individual Housing Finance Market in India, which is currently priced at Rs 33 lakh crore, is expected to increase to Rs 77-81 lakh crore from 15–16 percent of the compound annual growth rate (CAGR) between FY 25-30.
Carey ratings believe that this growth will be seen due to strong structural elements and favorable government incentives, making ‘Housing Finance’ an attractive asset for lenders.
It states that the market of residential properties remains on boom, a major driver of the housing finance industry, which is seeing a 74 percent increase from 2019 to 2024 to 4.6 lakh units. Whereas, sales performance became normal in 2024.
During FY 2021-24, banks have increased the Housing Loan Space with a CAGR of 17 percent, while housing finance companies (HFCs) have increased by 12 percent.
However, banks have dominated the housing loan market with a market share of 74.5 percent by March 31, 2024.
Carey ratings believe that both banks and HFCs have enough space to grow in view of the growth capacity of the housing finance market.
By 31 March, 2024, HFC’s market share was stable at around 19 percent and it is expected to continue the trend.
In FY 24, HFC’s loan portfolio rose by 13.2 percent to Rs 9.6 lakh crore, in line with the growth estimates of 12–14 percent of the care-up ratings.
For FY 2025 and FY 2026, CARAMARAGE ratings have expected an annual increase of 12.7 percent and 13.5 percent respectively by strong equity flow and capital reserves.
The retail segment remains a primary development driver for HFC, while a vigilant increase in the wholesale sector has been observed.
Geeta Chanani, Associate Director of CARAIAD Ratings, said, “HFCs work mainly in ticket size of less than Rs 30 lakh, which was 53 percent of the total AUM by March 2024. However, there has been a gradual increase of 23 percent to 27 percent from 23 percent to 27 percent in the ratio of AUM with ticket size AUM between Rs 30-50 lakhs and declined from 31 March to 30 September, Rs 30 lakh.”
-IANS
SKT/
