New Delhi: After a long spell of downturn, the real estate sector is showing strong signs of growth, rather a robust recovery and the interesting aspect is that it is being steered by the rural belts & hinterlands.
Tier III & Tier IV cities have led the recovery in real estate businesses and are also witnessing marked rise in demand for houses.
A detailed analysis of the home loans in rural and urban cities help break down the pattern of realty growth in the country.
Women borrowers driving this change
According to a report titled Emerging Trends In Residential Housing, the spurt in demand for home loans has been driven by tier-III and tier-IV cities rather than the tier-I and tier-II cities.
The rural belts have witnessed unprecedented rise in home loans particularly by women loan borrowers. It’s for the first time that women borrowers are coming forward to take loans and their percentage has seen a sharp rise from zero/negative to almost 16%.
In some areas, they are the leading home loan borrowers with their percentage amounting to 80%. Clearly, the Centre’s policy of SVAMITVA, PMAY (U) and Aspirational Districts are bearing fruits and ushering in a new social fabric by empowering of women as well as Economic Weaker Sections (EWS) of the society.
India ushering in new social fabric in rural hinterlands by empowering of women & EWS through properties. First time women borrowers for home loans at 16%, with some districts even crossing 80%. SVAMITVA, PMAY(U) & Aspirational Districts are game changers! pic.twitter.com/4kqPcPac3X
— Soumya Kanti Ghosh (@kantisoumya) August 8, 2022
The number of women borrowers taking home loans in tier-III and tier-IV cities is steadily rising. Chhattisgarh, Gujarat and Haryana have recorded maximum number of women home loan borrowers in the tier-III and tier-IV category.
Home loans on the rise in Tier III & Tier IV cities
According to the report, the disbursal of home loans has increased more in tier-III and tier-IV districts than tier-I & II cities, for the financial year 2022.
Punjab & Karnataka rank among the top-20 tier-III districts in terms of fresh loan disbursal.
Realty prices higher in small towns
According to the report, housing prices have witnessed greater rise in smaller cities and suburbs than in the major cities in past year.
Tier-II cities such as Guwahati, Raipur, Surat, Vadodara, Jaipur, Lucknow, Dehradun and tier-III cities like Coimbatore are witnessing higher growth in housing price than tier-I cities.