The average mortgage growth in the country between 2018-19 and 2021-22 is 11%, while it is 13% in Tier 3 and Tier 4 cities.
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- Mortgage: The average growth of mortgages in the country between 2018 19 and 2021 22 is 11%, while it is 13% in Tier 3 and 4 cities.
The direct impact of the Covid outbreak has been seen on the national housing sector. According to a report by the SBI, the average annual growth of home loans in the country was 11% between fiscal years 2018-19 and 2021-22. But in the same years, the annual growth in home loans in Tier 3 and Tier 4 cities was estimated at 12-13%. The particularity is that women have taken out up to 86% of real estate loans in small towns.
The report also noted that the average loan size in Tier 3 and 4 cities has also been higher in recent years compared to Tier 1 cities like Delhi, Mumbai and Tier 2 cities like Bhopal, Indore, Chandigarh . Cities like Aligarh, Baroda, Madurai fall under Tier-3 category and the rest of the smaller cities fall under Tier-4 category. According to SBI, due to the growing trend of working from home, especially during the Covid period, more homes were purchased by taking out loans in smaller towns.
Digital home office trend
The report said: “Working from home has changed family priorities. As people have had to work from home for a long time, some of them have set up digital offices at home. This trend was seen more in Tier 3 and Tier 4 cities. Due to this, people felt the need to have their own house.
House prices have also increased
Over the past four years, the demand and price for homes in Tier 3.4 cities has also increased more than in large, medium cities. House prices in cities like Raipur, Surat, Jaipur and Lucknow have risen faster than those in cities like Delhi, Mumbai, Chandigarh and Indore.
women at the top
Nearly half of home loans in Tier 4 cities were taken out by women. In some cities, more than three quarters of the loans were taken out by women. Women took 86% of new housing loans in Dang in Gujarat and 75% in Arwal in Bihar. There is a 0.10% home loan subsidy for women.
36% of loans distributed to small towns
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