National Housing Bank (NHB) Report on Trends and Progress of Housing in India 2024

1. In March 2025, The National Housing Bank (NHB) has released its comprehensive report titled "Trends and Progress of Housing in India 2024"
2. This report is in line with the provisions of Section 42 of the National Housing Bank Act, 1987.
   1. Section 42 of the National Housing Bank Act, 1987 mandates the National Housing Bank (NHB) to prepare and release an annual report on the trends and progress of housing in India.
3. The report provides in-depth insights into the performance of the housing sector, including housing loans, government schemes, market trends, and challenges.
    

Key Data and Highlights from the Report
 

Individual Housing Loans Outstanding
 

1. As of 30th September 2024, the total outstanding individual housing loans stood at ₹33.53 lakh crore.
2. This represents a 14% year-on-year growth over the corresponding period of the previous year.
    

Breakdown of Housing Loan Borrowers
 

The distribution of outstanding individual housing loans by different income groups is as follows:
 

1. EWS & LIG (Economically Weaker Section and Lower Income Group): 39%
2. MIG (Middle Income Group): 44%
3. HIG (Higher Income Group): 17%
    

Loan Disbursements
 

1. For the half-year period ending 30th September 2024, the total disbursements of individual housing loans amounted to ₹4.10 lakh crore.
2. For the full financial year ending 31st March 2024, disbursements stood at ₹9.07 lakh crore.
    

Housing Price Index (NHB-RESIDEX)
 

1. For the quarter ending September 2024, the Housing Price Index (NHB-RESIDEX) recorded a 6.8% year-on-year (YoY) increase in housing prices.
2. This is a higher increase compared to the previous year’s 4.9% YoY growth.
    

Government Initiatives Addressed in the Report
 

The report also highlights the impact of several key government schemes and initiatives on the housing sector:
 

1. Pradhan Mantri Awas Yojana (PMAY):
   1. PMAY-G (Gramin)
   2. PMAY-U (Urban)
   3. The impact assessment of PMAY-U is included in the report, reflecting on its success and areas of improvement.
2. Urban Infrastructure Development Fund (UIDF):
3. Affordable Rental Housing Complexes (ARHC) Scheme
    

Key Challenges Identified in the Housing Sector
 

1. Regional Disparities in Credit Flow:
   1. The report identifies significant disparities in the availability and flow of housing credit across different regions in India.
   2. Some regions face higher access to housing finance than others, creating an uneven growth pattern.
       
2. Vulnerability to Climate-Related Risks:
   1. The housing sector is increasingly vulnerable to climate-related challenges, such as flooding, cyclones, and other environmental risks.
   2. This calls for mitigation strategies in the design and financing of housing projects.
       

Technological Advancements and Growth Opportunities
 

The report identifies several growth drivers and technological advancements that are expected to facilitate the sector’s progress:
 

1. Technological Advancements in Construction: Innovations in construction technologies are expected to improve efficiency, reduce costs, and enhance the overall quality of housing.
2. These include the use of 3D printing, modular housing, and eco-friendly materials.
3. Digitization of Land Records: The ongoing digitization of land records is expected to reduce land-related disputes and increase transparency, making it easier to obtain housing finance and access property titles.
4. Urbanization: Continued urban growth and migration are expected to increase demand for housing, especially affordable housing.
5. Transit-Oriented Development (TOD): Development centered around transportation hubs is expected to create new areas for growth and investment in housing.
    

Outlook for the Housing Sector
 

1. The overall outlook for the housing sector remains promising, with expectations for sustained growth driven by:
   1. The PMAY 2.0 (Pradhan Mantri Awas Yojana 2.0) announcements in the Union Budget 2025.
   2. Increasing urbanization trends, leading to more demand for urban housing.
   3. Digitization, which will make land record management more transparent and efficient.
   4. Enhanced infrastructure development through schemes like UIDF.
       

About National Housing Bank (NHB)
 

1. Establishment: The National Housing Bank (NHB) is an apex agency created to promote and regulate Housing Finance Companies (HFCs) in India.
2. Ownership: NHB is a wholly-owned subsidiary of the Government of India (GoI).
3. Supervision & Regulation: NHB supervises HFCs, but the Reserve Bank of India (RBI) regulates them.
    

Formation:
 

1. National Housing Policy, 1988: The policy envisioned the establishment of NHB as the apex-level institution for housing finance in India.
2. Inception: NHB was set up on July 9, 1988, under the National Housing Bank Act, 1987.
3. Initial Capital: The RBI initially contributed the entire paid-up capital.
4. Post-2019: Following a notification on April 24, 2019, NHB's entire paid-up capital is held by the GoI.
    

Key Amendments:
 

1. RBI’s Role (2019): With an amendment to the National Housing Bank Act in the Union Budget 2019-20, the regulatory powers over HFCs, including registration, were transferred from NHB to the RBI effective from August 9, 2019.
    

Functions of NHB:
 

NHB works towards building a strong, healthy, cost-effective, and viable housing finance system in India. Its key functions include:
 

1. Supervision & Grievance Redressal: Ensuring effective supervision of HFCs and addressing grievances related to housing finance.
2. Financing: Providing financial support to housing finance institutions and other players in the housing finance sector.
3. Promotion & Development: Promoting and developing the housing finance sector in India.
    

Governance:
 

1. Board of Directors: The general superintendence, direction, and management of NHB's affairs are vested in its Board of Directors.
2. Head Office: Located in New Delhi.
    

NHB RESIDEX:
 

1. Official Housing Price Index (HPI): NHB RESIDEX is India’s first official housing price index that tracks and captures changes in residential real estate prices across the country.