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

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

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


Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

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

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?