India’s Homebuyers Are Getting Younger: Gen Z Home Loan Borrowers Rise 86%

 

NEW DELHI : India’s housing market is witnessing a noticeable shift in the age profile of homebuyers, with younger Indians entering the homeownership market earlier than previous generations. Data from Kotak Mahindra Bank shows that the number of home loan borrowers aged 25–30 years increased by 86% between FY24 and FY26, rising from 1,234 to 2,290.

The data indicates that Gen Z is emerging as the fastest-growing younger segment in the bank’s individual home loan portfolio. Their share increased from 6% in FY24 to 9% in FY26, representing a 50% increase in their contribution. By comparison, the number of borrowers aged 30–45 years increased by 26% during the same period.

The trend suggests that homeownership is becoming an earlier financial milestone for a growing number of young professionals. Factors such as career progression, rising incomes and dual-income households can support younger buyers in making a home purchase sooner.

According to Nakul Saxena, Head – Home Loans at Kotak Mahindra Bank, the aspiration for homeownership remains strong in Indian households, while the age at which people take that decision is changing.

The bank’s data also points to a change in how younger buyers approach their first property purchase. Rather than waiting to purchase a large long-term home, some are choosing properties that fit their current budgets and treating the first purchase as an initial step towards future financial goals.

The shift towards younger homebuyers could influence the type of residential properties developers bring to the market. Younger buyers may place greater emphasis on affordability, connectivity, amenities, work-from-home facilities and access to employment hubs.

The pandemic also contributed to changes in housing priorities, with space, privacy, natural light and community amenities gaining importance among many households, according to the bank.

For the wider real estate sector, the increase in younger home loan borrowers signals a changing customer base. Developers and lenders are increasingly addressing a generation that is entering the property market earlier, while homeownership continues to remain an important financial aspiration among Indian households.

By : The Realty Times — Real Estate News, Property Insights & Market Updates