This presentation provides an overview of the housing loan market in India.

1. 5/12/2015 1

2. REALTY SECTOR
RESIDENTIALSPACE
Fragmented market with few large players.
HOSPITALITYSPACE Competitive Market with many players
SEZ
Over 500 SEZ’s have been approved by
theGovt so far
Majority of SEZ’s are in IT Sector
COMMERCIAL SPACE Few players present across India
RETAIL SPACE
Fragmented Market with few National
Players
5/12/2015 2
SOURCE : www.cci.in

3.  40 years back , old people would bought houses through provident fund
etc.
 For most of them, taking a loan was an alien concept because of its
complex nature and lack of availability.
 But now as home owners are more young and aware about the home
loan benefits, most of them prefer for taking home loans.
 Loan-to-value ratios are substantially higher.And home loans have
become an essential part of their lives.
5/12/2015 3
SOURCE : http://www.business-standard.com/article/pf/40-years-ago-and-now-home-
loan-a-tale-of-three-institutions-114091400747_1.html

4. 0
20
40
60
80
100
120
140
160
180
200
FY 08 FY 09 FY 10 FY 11 FY 20 E
HOUSING DEMAND IN CRORE
CAGR [E] = 11.64%
4
SOURCE
:http://www.ibef.org
CAGR=7.45%
HOUSING
DEMAND IN
CRORE

5. YEAR DEMAND GROWTH CAGR
FY 08 5010 7.45%
FY 09 5330 6.38
FY 10 5560 4.31
FY11 6680 20.14
FY20 E 18000 169.5 11.64%
5/12/2015
SOURCE :http://www.ibef.org
5
AMOUNT IN Rs CRORE

6.  As per 2013 report of Cushman &Wakefield published, the total new
housing demand will be nearly 12 million units in the next five years
(2013- 17) and this is based on the estimated growth of population across
India .
 In 8 major cities in India, demand will be higher than supply by
approx.45% .
 Chennai is expected to see the highest demand – supply gap with supply
falling short by over 80% of the expected demand, while Mumbai is
expected to see the least imbalance in demand and supply with demand
outstripping by only 5% albeit, most of the supply will be in the HIG
category leaving MIG underserviced.
HIG – High Income Group ; MIG – Middle Income Group
5/12/2015 6SOURCE : http://www.cushmanwakefield.co.in/

7. 5/12/2015 SOURCE : http://www.mapsofindia.com/ 7
ONE
BEDROOM
HOUSE
TWO
BEDROOM
HOUSE
THREE
BEDROOM
HOUSE
FOUR
BEDROOM
HOUSE
HOUSE DESCRIPTION PERCENTAGE
ONE BEDROOM HOUSE 250-400 sq.ft 80.2%
TWO BEDROOM HOUSE 450-650 sq ft 10.5%
THREE BEDROOM HOUSE 650-900 sq ft 6.6%
FOUR BEDROOM HOUSE More than 1000 sq ft 2.7%
MARKET NEEDS

8. 0
100
200
300
400
500
600
700
800
900
AHMEDABAD PUNE BANGALORE NCR KOLKATA MUMBAI HYDERABAD CHENNAI
DEMANDIN‘000UNITS
CITIES
HOUSING DEMAND ANALYSIS 2013-17
5/12/2015 8
SOURCE : www.ibef.orgg/

9.  Defying the lows witnessed in FY2009 and FY2010, Bangalore’s
residential market has rebounded in the last two fiscal years
characterized by improved sales volumes and new project launches.
 Bangalore is expected to see one of the highest activity in the residential
markets in the next five years (2013 – 17).The demand for residential
units in the mid and high-end categories is expected to be approximately
413,000 units in the next five years
5/12/2015 9SOURCE : www.ibef.org

10.  Home Loans upto INR 50 Lakhs (for houses valued at INR 65 lakhs) in metros and
home loans upto 40 lakhs (for houses valued at INR 50 lakhs) in other places will
fall under the category of “affordable housing” by RBI
(Metros include Mumbai, New Delhi, Chennai , Kolkata , Bangalore & Hyderabad)
 Banks can issue long term bonds with minimum maturity of 7Years to raise
resources for lending to affordable housing.
 The pace of growth of home loans declined to 16.4 per cent in November 2014,
from 18.1 per cent in the year-ago period, according to Reserve Bank of India
data.
5/12/2015 10SOURCE : http://www.rbi.org/

11. 5/12/2015 11
SOURCE : ANNUAL
REPORT 2013 OF NHB
SOURCE :ANNUAL REPORT 2013 OF NHB
UPTO 2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L
2012 248 1211 7046 6681 12509 20971
2013 369 1267 9800 8196 16148 31291
0
5000
10000
15000
20000
25000
30000
35000
INDIVIDUAL
AMOUNT IN CRORES

12. 1% 2%
14%
14%
26%
43%
2012
2L 2L-5L 5L-10L
10L-15L 15L-25L ABOVE 25L
0%
2%
15%
12%
24%
47%
2013
5/12/2015
SOURCE :ANNUAL
REPORT 2013 OF NHB
12

13. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 13
2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L
2012 96 443 694 294 179 89
2013 114 449 872 366 248 136
0
100
200
300
400
500
600
700
800
900
1000
INDIVIDUAL
AMOUNT IN CRORES

14. 5%
21%
40%
17%
11%
6%
2013
5%
25%
39%
16%
10%
5%
2012
2L 2L-5L 5L-10L
10L-15L 15L-25L ABOVE 25L
5/12/2015 14
SOURCE :ANNUAL
REPORT 2013 OF NHB

15. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 15
2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L
2012 18 259 1843 2757 4595 8288
2013 21 311 1976 3097 5641 12285
0
2000
4000
6000
8000
10000
12000
14000
INDIVIDUAL
AMOUNT IN CRORES

16. 0% 1%
9%
13%
24%
53%
2013
0%
1%
10%
16%
26%
47%
2012
2L 2L-5L 5L-10L
10L-15L 15L-25L ABOVE 25L
5/12/2015
SOURCE :ANNUAL REPORT 2013 OF NHB
16

17. PARTICULARS 2012 2013
UPTO 2L 362 505
2L-5L 1912 2027
5L-10L 9584 12649
10L-15L 9732 11659
15L-25L 17,283 22,037
ABOVE 25L 29,348 43,712
TOTAL 68,221 92,589
5/12/2015 17
IN 2012-13 ,HFC’s DISBURSED Rs 92,589 CRORE FOR CONSTRUCTION,UPGRADATION &
PURCHASEOFOLD HOUSES (RESALE)
SOURCE :ANNUAL REPORT 2013 OF NHB
AMOUNT IN RsCRORES

18. 5/12/2015 SOURCE :ANNUAL REPORT 2013 OF NHB 18
2L 2L-5L 5L-10L 10L-15L 15L-25L ABOVE 25L
2012 362 1913 9583 9732 17283 29348
2013 504 2027 12648 11659 22037 43712
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
INDIVIDUAL
AMOUNT IN CRORES

19. 1% 3%
14%
14%
25%
43%
2012
2L 2L-5L 5L-10L
10L-15L 15L-25L ABOVE 25L
0%
2%
14%
13%
24%
47%
2013
5/12/2015 19SOURCE :ANNUAL REPORT 2013 OF NHB

20. 5/12/2015
SOURCE :ANNUAL REPORT 2013 OF NHB
20
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2012 2013
UPTO 2L 2L-5L 5L-10L 10L-15L 15L-25L 25L&MORE
92587
68221