Trends and Progress of Housing in India 2024

Here’s a short note on the “Trends and Progress of Housing in India 2024,” based on the latest report released by the National Housing Bank (NHB):

Key Highlights of the Report

1. Release and Context:
   • The report was released in March 2025 by the National Housing Bank (NHB), a statutory body under the Government of India.
   • It is prepared under the provisions of Section 42 of the National Housing Bank Act, 1987.
2. Housing Loans:
   • As of September 30, 2024, the total outstanding individual housing loans stood at ₹33.53 lakh crore, reflecting a 14% growth compared to the same period in the previous year.
   • Loan disbursements during the fiscal year ending March 31, 2024, amounted to ₹9.07 lakh crore, while disbursements for the half-year ending September 30, 2024, were ₹4.10 lakh crore.
3. Loan Distribution by Income Groups:
   • Economically Weaker Sections (EWS) and Low-Income Groups (LIG) accounted for 39% of outstanding loans.
   • Middle-Income Groups (MIG) held the largest share at 44%.
   • High-Income Groups (HIG) accounted for 17%.
4. Housing Price Index (NHB-RESIDEX):
   • The Housing Price Index recorded a year-on-year growth of 6.8% for the quarter ending September 2024, compared to 4.9% in the previous year.
5. Government Initiatives:
   • The report highlights flagship programs such as:
     • Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for rural housing.
     • Pradhan Mantri Awas Yojana-Urban (PMAY-U) for urban housing.
     • Urban Infrastructure Development Fund (UIDF).
     • Affordable Rental Housing Complexes (ARHC) scheme.
6. Challenges Identified:
   • Regional Disparities: Credit flow is concentrated in Southern (35%), Western (30%), and Northern (28%) regions, while Eastern (5.4%) and Northeastern (0.68%) regions lag behind.
   • Climate Risks: Increased vulnerability to floods, fires, and extreme weather necessitates resilient and energy-efficient housing.
   • Green Buildings: Only 5% of buildings in India are classified as “green,” highlighting the need for sustainable construction practices.
7. Technological Advancements:
   • The report emphasizes the role of technologies like 3D printing, artificial intelligence, and predictive modeling in reducing costs and expediting housing projects.
   • Digitization of land records is identified as a critical enabler for the housing sector.
8. Housing Loans as a Percentage of GDP:
   • Housing loans have increased from 6.60% of GDP in 2011-12 to 11.29% in 2023-24, showcasing the growing importance of the housing sector in the economy.
9. Outlook for the Sector:
   • The housing sector is expected to grow, driven by:
     • Budget announcements on PMAY 2.0.
     • Urbanization and transit-oriented development.
     • Digitization and geospatial initiatives.
10. Role of Institutions:
    • Banks account for 81% of housing loans, while Housing Finance Companies (HFCs) contribute 19%.
    • The National Housing Bank continues to play a pivotal role in supervising HFCs and facilitating housing finance.

Here are some multiple-choice questions (MCQs) based on the “Trends and Progress of Housing in India 2024” report:

1. What was the total outstanding individual housing loans as of September 30, 2024?
   • ₹30.53 lakh crore
   • ₹33.53 lakh crore
   • ₹35.53 lakh crore
   • ₹31.53 lakh crore
   • Answer: ₹33.53 lakh crore
2. Which income group accounted for the largest share of outstanding individual housing loans in 2024?
   • Economically Weaker Sections (EWS)
   • Low-Income Groups (LIG)
   • Middle-Income Groups (MIG)
   • High-Income Groups (HIG)
   • Answer: Middle-Income Groups (MIG)
3. What was the year-on-year growth rate of the Housing Price Index (NHB-RESIDEX) for the quarter ending September 2024?
   • 4.9%
   • 5.8%
   • 6.8%
   • 7.5%
   • Answer: 6.8%
4. Which region dominates housing finance disbursements in India?
   • Eastern and Northeastern
   • Western, Southern, and Northern
   • Central and Eastern
   • Northeastern and Central
   • Answer: Western, Southern, and Northern
5. What percentage of buildings in India are classified as ‘green’ as of 2024?
   • 3%
   • 4%
   • 5%
   • 6%
   • Answer: 5%
6. Which government scheme focuses on rural housing development?
   • Urban Infrastructure Development Fund (UIDF)
   • Affordable Rental Housing Complexes (ARHCs)
   • Pradhan Mantri Awas Yojana-Gramin (PMAY-G)
   • Pradhan Mantri Awas Yojana-Urban (PMAY-U)
   • Answer: Pradhan Mantri Awas Yojana-Gramin (PMAY-G)
7. What technological advancement is expected to facilitate growth in the housing sector?
   • Blockchain
   • 3D Printing
   • Quantum Computing
   • Artificial Intelligence
   • Answer: 3D Printing
8. What was the total housing loan disbursement during the fiscal year ending March 31, 2024?
   • ₹7.07 lakh crore
   • ₹8.07 lakh crore
   • ₹9.07 lakh crore
   • ₹10.07 lakh crore
   • Answer: ₹9.07 lakh crore
9. What is the share of housing loans in GDP as of 2023-24?
   • 9.29%
   • 10.29%
   • 11.29%
   • 12.29%
   • Answer: 11.29%
10. Which institution released the “Trends and Progress of Housing in India 2024” report?
    • Reserve Bank of India (RBI)
    • National Housing Bank (NHB)
    • Ministry of Housing and Urban Affairs
    • Housing Finance Companies (HFCs)
    • Answer: National Housing Bank (NHB)