Despite economic headwinds such as inflation, rising interest rates, and increasing real estate prices in FY 2023, the home loan sector has fared well. Despite some downsides, the attractiveness of our housing sector remains intact. The proof of this is the increase in demand for houses. In the first half of 2023–24, the GDP grew by 7.7 percent compared to last year. GDP has been hit hard during COVID. It has seen significant progress post-COVID. Post-Covid conditions have greatly increased the demand for houses. Also, the real estate market is in a groove with stable interest rates and positive growth. Home buyers make home-buying decisions with a lot of confidence. Experts argue that the demand for affordable houses is high due to the large working-age population in our country.
Technology is the key…
Technology integration, especially AI-based appraisals and blockchain aspects, will dynamically change the operational efficiency of home loans in 2023. During COVID, the documentation process shifted to online. After that, the same method continued. Technology is playing a vital role in many aspects related to these.
How will the trend be in 2024?
The home loan trend trajectory in India in 2024 depends on Reserve Bank interest rate fluctuations. It is also linked to economic factors like GDP growth and employment rates. Experts predict that government policies and tax regulations will have an impact on affordable housing. A growing population and favourable mortgage rates are said to help the real estate industry move forward.
