Home loan mkt grows 30% in 5 yrs: NHB

Property market in India has been growing by leaps and bounds. Mortgage lending has increased from one per cent of GDP in 1990 to almost 11 per cent of GDP now, with a total value of approximately Rs27 lakh crore. With a compound annual growth rate (CAGR) of about 30 per cent over the last five years, the development potential is enormous, says Rahul Bhave, Executive Director of National Housing Bank.

"The sector has performed admirably even throughout Covid pandemic. In comparison to the previous year, distribution increased by 185 per cent in FY 2021. Banks provided over 65 per cent of these loans, while housing finance companies (HFCs) provided the rest. In the housing sector, the entire game has changed, and technology is influencing the industry," he remarked during a webinar on Monday.

Experts from various industries, including regulatory organisations, banks and embassies convened for a webinar to discuss the role of digital technology in the property valuation assessment and mortgage ecosystem. The webinar was organised by a cloud-based technology platform Valocity which digitises the workflow for lenders to connect and manage their valuation panels.

Government of India's premier policy think tank NITI Aayog CEO Amitabh Kant was one of the panelists at the webinar. He said, "The need of the hour is to accelerate the digitisation in India. In keeping with India's ambitions to become a knowledge-based economy, the transformation of mortgage lending and connecting the property ecosystem will expedite the speed of socio-economic change in the country." "The use of technology and data intelligence will enable the end-to-end system and enable transparency. The experience of New Zealand-based Valocity will add a lot of value to the market. Amidst the unique advantages offered by India, this is an incredible opportunity for everyone in the property and valuation ecosystem," he added.

Dr MS Sahoo, Chairperson of Insolvency and Bankruptcy Board of India (IBBI), said: "Technology is increasingly making a difference to the market economy. Mortgage lending benefits from the digital processes and market economy needs the valuation of different assets. Uniformity of standards in valuation is need of the hour, and it is vital to encourage technology to facilitate the valuer community." Valocity is digitally connecting valuers, brokers, and lenders across New Zealand, Australia and Asia.

Carmen Vicelich, Founder and Global CEO of Valocity, said: "Investing in real estate is for many an emotional activity as people are buying their home, and collaboration is critical to the sector's progress. We make it possible for lenders to take advantage of cutting-edge technology, make data-driven decisions, and implement solutions swiftly and easily to deliver customer centricity."