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MagicLoans reported a sharp rise in demand for high-value home loans in Q4 2024, with the INR 50 lakh - INR 1 crore segment accounting for 36% of total disbursals. Pune led with a 30.6% share, followed by Hyderabad (22.6%), Bengaluru (17.3%), and Gurugram (14.2%), which recorded the highest average loan size. The surge is driven by the RBI's recent rate cut, rising property prices, and government-backed initiatives like the SWAMIH Fund. With home loan disbursals doubling since early 2024, India's housing market is set for continued expansion, driven by increasing affordability and demand for premium properties.
MagicLoans has reported a significant rise in demand for high-value home loans, particularly in the INR 50 lakh - INR 1 crore category, which emerged as the most sought-after segment in Q4 2024 (October-December). This bracket accounted for 36% of all home loans disbursed through the Magicbricks platform, reflecting a growing preference for premium housing. The INR 10 lakh - INR 50 lakh loan segment followed closely, contributing 33.7% of total disbursals, indicating strong demand in the mid-range housing segment as well. Advertisement
Among the cities leading this surge, Pune accounted for the highest share of home loan disbursals at 30.6%, highlighting the city's strong real estate momentum. Hyderabad followed with 22.6%, while Bengaluru and Gurugram contributed 17.3% and 14.2%, respectively. Notably, Gurugram recorded the highest average loan ticket size, reinforcing its position as a market for high-end residential properties.
The increasing demand for larger loan amounts and premium housing can be attributed to several key factors. One of the primary drivers is the Reserve Bank of India's (RBI) recent repo rate cut-the first reduction in nearly five years-which has effectively lowered borrowing costs for homebuyers and developers. This has made homeownership more affordable, further fuelling housing demand. Additionally, government-backed initiatives such as the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund have played a vital role in reviving stalled housing projects. Improved financial accessibility for developers has also contributed to the sector's expansion.
The report also highlighted that home loans in the INR 50 lakh - INR 1 crore range saw an 80% surge in Q4, reflecting rising residential prices and an increasing preference for higher-value properties. This trend indicates a growing inclination towards larger living spaces and premium amenities, signalling a shift in homebuyer preferences.
Additionally, Magicbricks revealed that the total volume of home loans disbursed between October and December 2024 more than doubled compared to the January-March 2024 period. This substantial rise underscores the housing sector's resilience, showcasing heightened consumer confidence and sustained demand.
As housing prices continue to rise and borrowing conditions remain favourable, the real estate market appears poised for further expansion. With increased affordability, improved financing options, and ongoing government support, the sector is expected to maintain its growth trajectory in the coming quarters, reinforcing India's evolving residential landscape.
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