Mumbai, Dec 18 (NationPress) India is witnessing a monumental surge in housing finance, with total home loan disbursements anticipated to hit Rs 150 trillion (Rs 150 lakh crore) within the next decade, as revealed by a recent report.

A robust combination of demographics, urbanization, infrastructure investment, and supportive policies is establishing the groundwork for one of the most significant long-term credit opportunities in India’s financial services sector, according to findings from Omniscience Capital.

Currently, mortgage penetration stands at only 11 percent of GDP, which is considerably lower than global averages, indicating that India’s housing finance market is still vastly untapped.

As disposable incomes increase and urban aspirations grow, the sector is approaching a pivotal moment presenting substantial potential for sustained, multi-year growth driven by strong structural factors, the report states.

By 2035, it is expected that India’s urban population will surpass 650 million, with an urbanization rate climbing to 43 percent, propelled by record investments in highways, metro systems, logistics corridors, and the rapid development of satellite towns.

This infrastructure-led growth is significantly expanding the potential housing market, driving demand far beyond just the traditional metropolitan areas, as emphasized in the report.

Moreover, government programs are enhancing affordability and facilitating supply, with PMAY-2.0 aimed at financing 30 million additional homes, SWAMIH-2 targeting the completion of 100,000 stalled mid-income housing projects, and the Rs 1 lakh crore Urban Challenge Fund aimed at transforming Indian cities into future economic centers.

The report also highlights that the ongoing implementation of RERA has improved transparency and bolstered buyer confidence throughout the real estate sector.

Estimations predict a total disbursement potential of Rs 150 trillion by 2035, even under conservative projections of 40 million urban mortgage demands and an average mortgage loan value of Rs 38 lakh.

With strong balance sheets, improving affordability, and a visible multi-year demand forecast, the housing finance industry is set to become a cornerstone of India’s next economic growth phase, the report concludes.