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

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..