HDFC Ltd has approved home loans of over Rs 2 lakh crore (trillion) this fiscal against Rs 1.55 lakh crore a year ago, an increase of 30 per cent.

Analysts said the robust numbers were driven by attractive interest rates, stable property prices and the recovery in economic activity.

HDFC also benefited from its distribution reach, brand equity and its emphasis on technology to win new buyers.

India's No. 1 mortgage lender said the demand for its loans have came from all across the country. “In over four-and-a-half decades, I have not seen a better time for the housing sector than now," Renu Sud Karnad, managing director, HDFC Ltd said.

Housing demand improved on account of greater affordability, favourable demographics, increasing urbanisation and rising aspiration, she said.

The credit linked subsidy scheme under the Pradhan Mantri Awas Yojana has increased the demand for loans.

The residential segment will continue to see strong momentum as this was a case of not only pent-up demand but also structural factors that raised buyer interest.

Karnad pointed out that there have been a strong pipeline of new launches surpassing pre-pandemic levels.

The demand continues to be from first-time homeowners as well as those moving up the property ladder – generally into bigger homes.

“We are seeing healthy demand across metros and non-metros and demand is prevalent in affordable as well as high-end markets. The sweet spot for housing is still in the price range of Rs 50 lakh-1 crore,’’ she observed.

The HDFC managing director said affordable housing would continue to be the driving force behind the real estate sector, with demand extremely deep and resilient for them.

Besides developers are transitioning to the mid- and affordable segment by providing right-sized, right-priced units .

For the nine months ended December 31, 2021, HDFC said, 30 per cent of loans approved in volume terms and 13 per cent in value terms have been to customers from the economically weaker section and low income groups (LIG).

Outstanding home loans in the country till January stood at Rs 15.5 lakh crore, a growth of 7.6 per cent over the previous year, according to the RBI.

What works

• Attractive interest rates

• Stable property prices

• Credit-linked subsidy plan

• Demand for affordable housing