Economic Survey 2026: Access to housing finance grows over the years

Kolkata: Access to housing finance has deepened over the years with the share of housing loans to GDP rose to 11% in FY25 from 8% in FY15, the Economic Survey for 2025-26 showed.

Housing finance expanded steadily while the outstanding individualhousing loans more than tripled to Rs 37 lakh at the end of March 2025 from Rs 10 lakh a decade back.

This indicated that the housing sector saw deeper financialisation, the survey observed.


"Demand-side measures, such as interest subvention under Pradhan Mantri Awas Yojana - Urban, the affordable housing fund, lower interest rates,

and streamlined credit processes, have further strengthened access to housing finance," the pre-budget economic report said.


It noted that the real estate sector entered a sustained upcycle from September 2021, post-COVID, as reflected in improved sales, driven by higher household savings channelled towards physical assets.

"The momentum has continued in recent quarters, supported by favourable affordability conditions and easing inflation," the report said.

Urban initiatives, such as the Smart Cities Mission and the Urban InfrastructureDevelopment Fund, have supported housing demand in tier 2 and tier 3 cities.