Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Indian Housing Loan Market Overview

756 views

Published on

This presentation provides an overview of the housing loan market in India.

Published in: Economy & Finance
  • Be the first to comment

Indian Housing Loan Market Overview

  1. 1. 5/12/2015 1
  2. 2. REALTY SECTOR RESIDENTIALSPACE Fragmented market with few large players. HOSPITALITYSPACE Competitive Market with many players SEZ Over 500 SEZ’s have been approved by theGovt so far Majority of SEZ’s are in IT Sector COMMERCIAL SPACE Few players present across India RETAIL SPACE Fragmented Market with few National Players 5/12/2015 2 SOURCE : www.cci.in
  3. 3.  40 years back , old people would bought houses through provident fund etc.  For most of them, taking a loan was an alien concept because of its complex nature and lack of availability.  But now as home owners are more young and aware about the home loan benefits, most of them prefer for taking home loans.  Loan-to-value ratios are substantially higher.And home loans have become an essential part of their lives. 5/12/2015 3 SOURCE : http://www.business-standard.com/article/pf/40-years-ago-and-now-home- loan-a-tale-of-three-institutions-114091400747_1.html
  4. 4. 0 20 40 60 80 100 120 140 160 180 200 FY 08 FY 09 FY 10 FY 11 FY 20 E HOUSING DEMAND IN CRORE CAGR [E] = 11.64% 4 SOURCE :http://www.ibef.org CAGR=7.45% HOUSING DEMAND IN CRORE
  5. 5. YEAR DEMAND GROWTH CAGR FY 08 5010 7.45% FY 09 5330 6.38 FY 10 5560 4.31 FY11 6680 20.14 FY20 E 18000 169.5 11.64% 5/12/2015 SOURCE :http://www.ibef.org 5 AMOUNT IN Rs CRORE
  6. 6.  As per 2013 report of Cushman &Wakefield published, the total new housing demand will be nearly 12 million units in the next five years (2013- 17) and this is based on the estimated growth of population across India .  In 8 major cities in India, demand will be higher than supply by approx.45% .  Chennai is expected to see the highest demand – supply gap with supply falling short by over 80% of the expected demand, while Mumbai is expected to see the least imbalance in demand and supply with demand outstripping by only 5% albeit, most of the supply will be in the HIG category leaving MIG underserviced. HIG – High Income Group ; MIG – Middle Income Group 5/12/2015 6SOURCE : http://www.cushmanwakefield.co.in/
  7. 7. 5/12/2015 SOURCE : http://www.mapsofindia.com/ 7 ONE BEDROOM HOUSE TWO BEDROOM HOUSE THREE BEDROOM HOUSE FOUR BEDROOM HOUSE HOUSE DESCRIPTION PERCENTAGE ONE BEDROOM HOUSE 250-400 sq.ft 80.2% TWO BEDROOM HOUSE 450-650 sq ft 10.5% THREE BEDROOM HOUSE 650-900 sq ft 6.6% FOUR BEDROOM HOUSE More than 1000 sq ft 2.7% MARKET NEEDS
  8. 8. 0 100 200 300 400 500 600 700 800 900 AHMEDABAD PUNE BANGALORE NCR KOLKATA MUMBAI HYDERABAD CHENNAI DEMANDIN‘000UNITS CITIES HOUSING DEMAND ANALYSIS 2013-17 5/12/2015 8 SOURCE : www.ibef.orgg/
  9. 9.  Defying the lows witnessed in FY2009 and FY2010, Bangalore’s residential market has rebounded in the last two fiscal years characterized by improved sales volumes and new project launches.  Bangalore is expected to see one of the highest activity in the residential markets in the next five years (2013 – 17).The demand for residential units in the mid and high-end categories is expected to be approximately 413,000 units in the next five years 5/12/2015 9SOURCE : www.ibef.org
  10. 10.  Home Loans upto INR 50 Lakhs (for houses valued at INR 65 lakhs) in metros and home loans upto 40 lakhs (for houses valued at INR 50 lakhs) in other places will fall under the category of “affordable housing” by RBI (Metros include Mumbai, New Delhi, Chennai , Kolkata , Bangalore & Hyderabad)  Banks can issue long term bonds with minimum maturity of 7Years to raise resources for lending to affordable housing.  The pace of growth of home loans declined to 16.4 per cent in November 2014, from 18.1 per cent in the year-ago period, according to Reserve Bank of India data. 5/12/2015 10SOURCE : http://www.rbi.org/
  11. 11. 5/12/2015 11 SOURCE : ANNUAL REPORT 2013 OF NHB SOURCE :ANNUAL REPORT 2013 OF NHB UPTO 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 2012 248 1211 7046 6681 12509 20971 2013 369 1267 9800 8196 16148 31291 0 5000 10000 15000 20000 25000 30000 35000 INDIVIDUAL AMOUNT IN CRORES
  12. 12. 1% 2% 14% 14% 26% 43% 2012 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 0% 2% 15% 12% 24% 47% 2013 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 12
  13. 13. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 13 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 2012 96 443 694 294 179 89 2013 114 449 872 366 248 136 0 100 200 300 400 500 600 700 800 900 1000 INDIVIDUAL AMOUNT IN CRORES
  14. 14. 5% 21% 40% 17% 11% 6% 2013 5% 25% 39% 16% 10% 5% 2012 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 5/12/2015 14 SOURCE :ANNUAL REPORT 2013 OF NHB
  15. 15. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 15 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 2012 18 259 1843 2757 4595 8288 2013 21 311 1976 3097 5641 12285 0 2000 4000 6000 8000 10000 12000 14000 INDIVIDUAL AMOUNT IN CRORES
  16. 16. 0% 1% 9% 13% 24% 53% 2013 0% 1% 10% 16% 26% 47% 2012 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 16
  17. 17. PARTICULARS 2012 2013 UPTO 2L 362 505 2L-5L 1912 2027 5L-10L 9584 12649 10L-15L 9732 11659 15L-25L 17,283 22,037 ABOVE 25L 29,348 43,712 TOTAL 68,221 92,589 5/12/2015 17 IN 2012-13 ,HFC’s DISBURSED Rs 92,589 CRORE FOR CONSTRUCTION,UPGRADATION & PURCHASEOFOLD HOUSES (RESALE) SOURCE :ANNUAL REPORT 2013 OF NHB AMOUNT IN RsCRORES
  18. 18. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 18 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 2012 362 1913 9583 9732 17283 29348 2013 504 2027 12648 11659 22037 43712 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 INDIVIDUAL AMOUNT IN CRORES
  19. 19. 1% 3% 14% 14% 25% 43% 2012 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L 0% 2% 14% 13% 24% 47% 2013 5/12/2015 19SOURCE :ANNUAL REPORT 2013 OF NHB
  20. 20. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 20 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 2012 2013 UPTO 2L 2L-5L 5L-10L 10L-15L 15L-25L 25L&MORE 92587 68221

×