Blitz Bureau
NEW DELHI: India is undergoing a historic housing finance upcycle, with cumulative home loan disbursements projected to touch Rs 150 trillion (Rs 150 lakh crore) over the next decade, a new report showed on December 18. A powerful convergence of demographics, urbanisation, infrastructure investment, and policy support is laying the foundation for one of the most enduring structural credit opportunities in India’s financial services landscape, according to the report by Omniscience Capital.
With mortgage penetration at just 11 per cent of GDP, far below global benchmarks, India’s housing finance market remains deeply under-penetrated. As incomes rise and urban aspirations expand, the sector is entering a inflection point offering substantial headroom for sustained, multi-year growth backed by strong structural catalysts, said the report.
By 2035, the country’s urban population is projected to exceed 650 million with urbanisation rate rising to 43 per cent, fuelled by unprecedented investments in highways, metro rail networks, logistics corridors, and the rapid emergence of satellite townships. This infrastructure-led expansion is dramatically widening the addressable housing market, pushing demand well beyond the traditional metros, the report highlighted. Further, Government initiatives are strengthening affordability and aiding supply creation with PMAY-2.0 aimed to support financing for 30 million additional homes, SWAMIH-2 targeting completion of 100,000 stalled mid-income housing units, and the Rs 1 lakh crore Urban Challenge Fund is designed to reshape Indian cities into future growth hubs.
