Maharashtra has witnessed the highest penetration as far as the affordable housing category is concerned. Maharashtra comprises of close to half of the total affordable housing portfolio in the country and the top three states (including Rajasthan and Gujarat) together take up 64% of the total affordable housing portfolio. Maharashtra, Tamil Nadu, Delhi-NCR and Karnataka have collectively accounted for 61% of the portfolio, majorly spurred by volumes in Mumbai and its metropolitan zone, Noida, Gurgaon, Delhi, Bangalore and Chennai.
As per reports, housing loans continue taking up the lion’s share of loan books as far as HFCs (housing finance companies) are concerned. However, the overall housing loan share has been going down due to the higher growth witnessed in the non-housing loan category. Reports have analyzed 28 housing finance companies which take up in excess of 75% of the total housing loan portfolios as of the 31st of March, 2017. The non-housing loan portfolios of smaller housing finance companies majorly have loans taken against property in case of HFCs. LAP (loan against property) account for 25% of the total loan book. Home loans take up a whopping 83% of the total portfolio in case of new housing finance companies in the affordable category.
Although some of the bigger housing finance companies have been giving stiff competition to banks in the salaried category for home loans, most of these companies are also tapping the affordable housing space or self-employed category for scaling up overall yields and tapping into future growth prospects. The affordable housing category is growing faster in comparison to the entire housing finance sector. The ticket sizes for housing finance companies stands at approximately Rs.24 lakh as on the 31st of March, 2017. HFCs functioning in the affordable category witnessed considerably lower ticket sizes of Rs.10-12 lakh. Almost 60% of home loans ranged between Rs.10-50 lakh for housing finance companies.
According to experts, the affordable housing segment is the major growth driver of the future. Housing finance companies are also expected to witness skyrocketing growth in the future, driven by the spurt in affordable housing.