There has to be a direct co-relation with home sales and home loans number. One goes up other follows. Demand for houses is ever increasing and so is the demand for fresh capital in form of home loan.
A recent study by JLL stated that home sale has surged 40% in the last 9 months majorly due to government reforms of demonetization, implementation of RERA, GST, Benami Properties (Prevention) Act and the Insolvency & Bankruptcy Code, states the report.
Also, schemes like Pradhan Mantri Awas Yojana has to lead to an increase in house sales.
City wise growth rate –
- Hyderabad – 277%
- Kolkata 230%
- Chennai 77%
- NCR 53%
- Pune 19%
- Bangalore 12%
Smaller markets saw a good growth majorly due to relatively small ticket size and also due to the creation of more job opportunities especially in Hyderabad.
One can focus on listed builders who are focusing on these small markets with high growth opportunity.
Home loan demand has increased as per a report by Liases Foras. As per the report home loan demand has increased but also the unsold flats in eight Indian major cities have increased by 1.05 percent compared to last year.
The report states for July-September 2018, outstanding home loans grew at a very healthy rate of 15.6%, in comparison to the same period last year.
It also states people are buying more homes from investors than builders directly.
The average home loan given by HDFC is Rs 27 lakh. For government banks, it is around Rs 25 lakh.