Ahmedabad: Gujarat’s residential real estate market is showing signs of a slowdown, with a sharp 42% year-on-year drop in home loan accounts in the December quarter, even as total disbursals rose modestly.

The latest State Level Bankers’ Committee (SLBC), Gujarat report shows that home loan accounts fell 42% year-on-year in the December quarter, declining from 1.75 lakh to 1.01 lakh. In contrast, fresh home loan disbursals rose 5%, from Rs 15,211 crore to Rs 16,028 crore during the same period.

The data indicate fewer borrowers but higher ticket-size loans, suggesting that demand is concentrated in premium housing rather than broad-based buying. Private banks have pared their housing exposure, while public sector banks expanded lending selectively.

Supply trends also reflect moderation. Data from the Gujarat Real Estate Regulatory Authority (GujRERA) show that new project registrations declined from 1,859 in 2022–23 to 1,715 in 2023–24, before recovering slightly to 1,822 in 2024–25. So far this fiscal, 1,418 projects have been registered.

Industry stakeholders say affordable and mid-income housing are witnessing weak demand, while premium homes continue to see traction. High property prices and cautious buyer sentiment have weighed on volumes, with developers adopting a wait-and-watch approach to fresh launches. DeshGujarat