Gujarat's housing loan disbursals surge 60% to Rs 420 billion in a year

08 Jun 2023 CW Team

The report also highlights a substantial rise in the number of beneficiaries receiving fresh home loan disbursals. The number increased from 2.73 lakh to 4.26 lakh, representing a 56% increase.

Bankers and developers attribute the growth in home sales to customers' desire for home upgrades and the overall positive sentiment prevailing in the real estate sector.

There has been an upswing in investment in real estate, and new projects are being launched to meet the growing demand. Since the lockdown, people have realised the importance of owning a new home or an additional property, which has significantly boosted the inclination to purchase new homes. Moreover, the demand for home loans has increased due to more people buying second homes.

Bankers also acknowledge an increase in home loan applications from young buyers. Ahmedabad is now home to a significant number of young professionals with substantial disposable income. These customers, especially salaried professionals, often invest in new homes for the purpose of tax savings. As a result, they frequently opt for home loans to save taxes, which further drives the demand.

Over the past year, property prices in different parts of Ahmedabad have escalated by 10-15%. In April 2022, the Confederation of Real Estate Developers' Association of India (Credai) Ahmedabad chapter announced an increase of Rs 400-500 per sq ft in Ahmedabad, followed by similar increases by developers in other parts of the state.

Developers also attribute the surge in home demand to increased migration to Ahmedabad and the growing desire for new homes since the Covid-19 pandemic.

Residents of Ahmedabad, Gandhinagar, Vadodara, and Surat are increasingly seeking an improved lifestyle by transitioning to larger, more spacious homes with better amenities. Consequently, there is strong demand for high-end properties across all major cities in the state. Developers are developing new projects with enhanced amenities such as swimming pools, gyms, and jogging parks, further driving the demand.

Also read:
Delhi civic body launches mobile app for geo-tagging
CM inaugurates Itanagar Municipal Corporation’s new building

In Gujarat, many people are realising their dream of becoming homeowners. It is observed that despite the increase in property prices and interest rates, there has been a 60% surge in housing finance disbursals during the fiscal year 2023 compared to the previous year, FY 2022. According to data provided by the State Level Bankers' Committee (SLBC), fresh home loan disbursals reached Rs 420.48 billion in the fiscal year, which is a significant increase from Rs 262.99 billion in the previous year. The report also highlights a substantial rise in the number of beneficiaries receiving fresh home loan disbursals. The number increased from 2.73 lakh to 4.26 lakh, representing a 56% increase. Bankers and developers attribute the growth in home sales to customers' desire for home upgrades and the overall positive sentiment prevailing in the real estate sector. There has been an upswing in investment in real estate, and new projects are being launched to meet the growing demand. Since the lockdown, people have realised the importance of owning a new home or an additional property, which has significantly boosted the inclination to purchase new homes. Moreover, the demand for home loans has increased due to more people buying second homes. Bankers also acknowledge an increase in home loan applications from young buyers. Ahmedabad is now home to a significant number of young professionals with substantial disposable income. These customers, especially salaried professionals, often invest in new homes for the purpose of tax savings. As a result, they frequently opt for home loans to save taxes, which further drives the demand. Over the past year, property prices in different parts of Ahmedabad have escalated by 10-15%. In April 2022, the Confederation of Real Estate Developers' Association of India (Credai) Ahmedabad chapter announced an increase of Rs 400-500 per sq ft in Ahmedabad, followed by similar increases by developers in other parts of the state. Developers also attribute the surge in home demand to increased migration to Ahmedabad and the growing desire for new homes since the Covid-19 pandemic. Residents of Ahmedabad, Gandhinagar, Vadodara, and Surat are increasingly seeking an improved lifestyle by transitioning to larger, more spacious homes with better amenities. Consequently, there is strong demand for high-end properties across all major cities in the state. Developers are developing new projects with enhanced amenities such as swimming pools, gyms, and jogging parks, further driving the demand. Also read: Delhi civic body launches mobile app for geo-tagging CM inaugurates Itanagar Municipal Corporation’s new building

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Infrastructure Transport

28 Oct 2025

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Real Estate

28 Oct 2025

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..