Housing Loan Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Purpose (Home Purchase, Refinance, Home Improvement, Construction, Other ( Re-Sale, etc.)), By End User (Employed Individuals, Professionals, Students, Entrepreneur, Others (Homemaker, Unemployed, Retired, etc.)), By Tenure (Less Than 5 years, 6-10 years, 11-24 years, and 25-30 years), By Region
Published Date: January - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationHousing Loan Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Purpose (Home Purchase, Refinance, Home Improvement, Construction, Other ( Re-Sale, etc.)), By End User (Employed Individuals, Professionals, Students, Entrepreneur, Others (Homemaker, Unemployed, Retired, etc.)), By Tenure (Less Than 5 years, 6-10 years, 11-24 years, and 25-30 years), By Region
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India Housing Loan Market was valued at USD 329.88 billion in 2024 and is anticipated to grow USD 561.47 billion by 2029 with a CAGR of 9.33% through 2030.
The global housing loan market is anticipated to project robust growth in the forecast period owing to the rising standards of living, growing construction activities, and surging demand for housing loans among individuals for home purchase, refinance, home improvement, other purposes such as re-sale, plot purchase, construction, balance transfer, conversion.
An amount of money borrowed from a bank or financial institution to pay for a house is known as a house loan or a home loan. Home loans include payment terms and an interest rate that is either fixed or adjustable. In most cases, people take out a home loan to either purchase a home or apartment, a piece of land on which to build a home, or to renovate, expand, and repair an existing home. The property is mortgaged to provide security for the lender until the loan is repaid. Until the loan and any associated interest are repaid, the bank or other lending institution will hold the title or deed to the property.
Depending on the borrower's needs, interest rates for home loans may be fixed, floating, or partially fixed and partially floating. The governments are even more supportive in such cases as in India, that allows certain tax advantages following Section 80EE of the Income Tax Act where an individual can apply to the home loan and avail taxation rebate. However, only first-time home buyers can claim the income tax deduction for home loan interest.
The COVID-19 pandemic's led limited employment opportunities and decline in income caused the demand for housing, the housing market, and housing loans to fall. Housing finance companies didn't record any sequential growth in the on-book portfolio in Q1 of 2022 due to COVID-19's second wave affecting their disbursements and collection efficiency (CE). During the pandemic, asset quality decreased across all market segments. The construction finance segment was most negatively impacted, thus impacting the loans against property and home loans sector. In contrast to 2021, the demand did, however, slightly increased in 2022. Following the initial COVID-19 wave, the residential housing market experienced a significant recovery. This was primarily due to reduced premiums, developers’ schemes, stamp duty in some states, and low-interest rates. The current inventory level indicates that the market will continue to thrive, and sales will increase.
In the field of housing finance, digital platforms and banks are becoming more active. MFIs and housing finance companies are increasingly utilizing digital field applications and platforms for credit scoring to enhance customer satisfaction, reach out to new customer segments, increase operational effectiveness, and provide more products. Gardena, an Indonesian fintech platform for peer-to-peer lending specializing in property-related financing, is an example of this business model. The company aims to cater the first-time homebuyers who struggle to accumulate enough money for a down payment. Bringing together builders, brokers, investors, and banks helps them by lowering costs and increasing the accessibility of real estate investments. In the foreseeable future, it is anticipated that this tendency will persist. Moreover, customers’ reliance on a digital platform has increased over the past few years.
Demand for housing is influencing the market growth
The high demand for housing reflected the low-interest rate environment and shifting preferences brought on by the Covid pandemic. Substantial capital and liquidity positions allowed banks to substantially meet this demand by increasing their exposure to mortgage loans. However, the lack of housing investments in prior years, construction limitations, and supply-chain disruptions brought on by the pandemic all contributed to the supply falling short of demand simultaneously.
As a result, housing prices saw rapid growth in many EU nations. Moreover, in comparison to 2020, Serbian banks reported a 40% increase in the volume of housing loans. According to the report, Serbians obtained housing loans totaling more than USD50.74 million in 2021. According to sources at the National Bank of Serbia (NBS) and the Association of Banks of Serbia (UBS), the increase in new apartments, lower down payments, and interest rates are half what they were ten years ago.. At the end of September 2021, Serbians owed approximately USD364.75 million on more than 140,000 housing loans, according to data from UBS. According to UBS data, the real estate market experienced a growth of 27% from the year 2020..
Rising Inflation Are Hindering The Market Growth
The issue of inflation majorly hinders the market of housing loans. As a result, various housing loan providers increased the loan interest rate, further increasing the cost of borrowing. American consumers are suffering, and the housing market is being affected by rising inflation and interest rates. According to the Mortgage Bankers Association, mortgage demand dropped in June 2022 and reached its lowest level since 2000. The fact that the interest rates have nearly doubled since the beginning of the year has significantly reduced buyers' purchasing power. Mortgage applications for home purchases decreased by 7% for the mid-week of July 2022 and were 19% lower than during the same week in 2021. Although buyers have had to deal with high prices all year, their purchasing power has significantly decreased due to rates nearly twice what they were in January 2021.. As a result, this is a significant factor preventing the Housing Loans market from expanding.
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Market Segmentation
The global housing loan market is segmented based on Purpose, End User, tenure, region, and competitional landscape. Based on Purpose, the market is further fragmented into Home Purchase, Refinance, Home Improvement, Construction, and Others (Re-Sale, etc.). Based on End User, the market is categorized into Employed Individuals, Professionals, Students, Entrepreneur, and Others (Homemaker, Unemployed, Retired, etc.). Based on Tenure, the market is segmented into Less than 5 years, 6-10 years, 11-24 years, and 25-30 years. The market analysis also studies the regional segmentation, divided among North America, Europe, Asia-Pacific, Middle East & Africa, and South America.
Company Profiles
Bank of America Corporation, Charles Schwab & Co., Citigroup, Inc., Dewan Housing Finance Corporation Limited, Goldman Sachs (Marcus), HSBC Group, JPMorgan Chase & Co., LIC Housing Finance Limited, Morgan Stanley, Wells Fargo & Co., are among the major market players in the global housing loan market.
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Attribute |
Details |
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Base Year |
2022 |
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Historical Years |
2018 – 2021 |
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Estimated Year |
2023 |
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Forecast Period |
2024 – 2028 |
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Quantitative Units |
Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028 |
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Report Coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments Covered |
Purpose End User Tenure Region Company |
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Regional Scope |
North America, Europe, Asia-Pacific, Middle East & Africa and South America |
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Country Scope |
United States; Canada; Mexico; United Kingdom; Germany; France; Italy; Spain; China; India; Japan; South Korea; Australia; UAE; South Africa; Turkey; Saudi Arabia; Brazil; Argentina; Colombia |
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Key Companies Profiled |
Bank of America Corporation, Charles Schwab & Co., Citigroup, Inc., Dewan Housing Finance Corporation Limited, Goldman Sachs (Marcus), HSBC Group, JPMorgan Chase & Co., LIC Housing Finance Limited, Morgan Stanley, Wells Fargo & Co. |
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Customization Scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and Purchase Options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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