Home loan market has grown nearly 30% in past five years: National Housing Bank

The real estate market in India has grown by leaps and bounds. Mortgages have grown from 1% of GDP in 1990 to almost 11% of GDP today, with a total value of around Rs 27 lakh crore.

According to Rahul Bhave, Executive Director of the National Housing Bank, a CAGR of over 30% over the past five years, the potential for development is huge. “The sector has performed admirably even throughout COVID. Compared to the previous year, distribution increased by 185% in fiscal year 2021. Banks provided more than 65% of these loans, while HFCs provided the rest. In the housing sector, the whole game has changed and technology is influencing the industry. ”

Mortgages have risen from 1% of GDP in 1990 to almost 11% of GDP today, with a total value of around Rs 27 lakh crore, he said.

Accelerating Digitization: Amitabh Kant

The need of the hour is to accelerate digitalization in India, pointed out Amitabh Kant, Managing Director of NITI Aayog, the government innovation think tank. “In line with India’s ambitions to become a knowledge-based economy, transforming mortgage lending and connecting the real estate ecosystem will accelerate the speed of socio-economic change in the country,” Kant said.

Dr MS Sahoo, Chairman of the Indian Insolvency and Bankruptcy Board, said technology is increasingly making a difference in the market economy. “Mortgage credit benefits from digital processes and the market economy needs the valuation of different assets. Uniformity in valuation standards is the need of the hour, and it is essential to encourage technology to facilitate the evaluator community,” he said.

The Indian government has aggressively pushed digitalization, and the COVID-19 pandemic has taken a 5-year digital leap forward, said Shanti Ekambaram, Group President – Consumer Banking at Kotak Mahindra Bank. This means that the financial ecosystem and its players must act quickly to digitize all aspects. “Mortgage is one of the major needs in India, and it is important to create an ecosystem of all players powered by technology,” she said.

Carmen Vicelich, Founder and Global CEO of Valocity, said digital innovation is imperative in the changing landscape. “Investing in real estate is for many an emotional activity as people buy their homes, and collaboration is essential to the progress of the sector.”

RV Verma, non-executive chairman of Valocity and former chairman and CEO of National Housing Bank said buying a property is a complex matter, especially in India. It is complex and there are many gaps that we are trying to fill through a reform program. “The development, transparency and standardization of market infrastructures are key aspects of the stability of the mortgage industry, which is increasingly demand-driven and consumer-driven.”

“Digitalization will add a lot of value and improve efficiency,” he continued. Mortgage business is poised for explosive growth. Now is the time to seize the opportunity to implement digitization. It will be a win-win situation for everyone, and it will be a fantastic opportunity to make the mortgage market more competitive.

Experts from various industries, including regulators, banks and embassies, came together for a webinar to discuss the role of technology and digital in real estate valuation and the mortgage ecosystem.

The webinar was hosted by Valocity which offers a cloud-based technology platform that digitizes the workflow for lenders to connect and manage their rating panels.

Based in Mumbai and Delhi, Valocity offers a cloud-based platform that connects the ecosystem of lenders and

appraisers to transform mortgages with digitized appraisals and real estate analytics. the

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Posted: Monday August 30th 2021, 3:21 PM IST

Priscilla C. Carnegie