SBI Chairman C S Setty has urged a review of the definition of “affordable home,” pointing to a rapid rise in loan sizes within the segment. The bank says average affordable housing loan amounts have increased to about Rs 51 lakh from roughly Rs 35–40 lakh just two years ago, despite the segment remaining highly competitive.
Bengaluru’s housing market has recorded a 5.3% annual price growth over the past five years, but the supply gap is widening for “affordable” homes priced between Rs 30 lakh and Rs 50 lakh. Developers are increasingly building premium 3BHK apartments in the Rs 1 crore to Rs 2 crore range, where sales are also strongest.
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PNB Housing Finance expects 18–20% loan growth this fiscal year, with an ambitious push to build its loan book to Rs 1 lakh crore by FY27. The strategy leans on affordable and emerging customer segments, while recoveries from previously written-off loans are expected to keep credit costs under control.
Home sales are expected to improve each quarter in 2021 compared with 2020, supported by a revival in the affordable segment led by middle-class buyers. While a second wave of Covid-19 could temporarily hit transactions, industry players believe affordability demand can recover to prior levels or higher. However, rising resale flat supply may soften the longer-term outlook.
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