Ahmedabad: Gujarat’s real estate sector is witnessing a significant shift in dynamics, largely influenced by a prevailing liquidity crunch . According to the latest report by the State Level Bankers’ Committee (SLBC) – Gujarat, there has been a notable decline in the number of takers of housing finance . In the first quarter of FY 2025, only 1.
01 lakh individuals opted for housing loans, a drop from 1.5 lakh borrowers recorded during the same period in FY 2024. Interestingly, though the number of housing loan applicants saw a decline, the total amount disbursed increased by 62% year-on-year during the said period.
The report highlights that disbursals surged from Rs 8,307 crore in Q1 FY 2024 to Rs 13,433 crore in Q1 FY 2025. This suggests a clear trend towards higher ticket sizes in housing finance, indicating that while fewer people are taking out loans, those who do, are opting for larger sums. Bankers attribute this trend to a growing demand for luxury and premium housing , as opposed to the relatively muted demand in the affordable segment.
“The heightened interest rate appears to have a dearer effect on the lower and middle-income segments. These groups typically drive the affordable housing sector. On the other hand, the premium and luxury segments seem less affected by the liquidity squeeze.
Buyers in these categories typically have more financial resilience and are less dependent on external financing, allowing them to continue purchasing high-value properties.