Gen Z and Millennials Drive Real Estate Market in Hyderabad: Kotak Insights
“Homeowners across India are getting younger,” said Manu Singh, Business Head, Housing Finance, Kotak Mahindra Bank Ltd. “We are seeing borrowers make the jump earlier. The average age of a Kotak home loan borrower is now reduced to 32 years and expected to reduce some more. It was around 36 just five years ago. Gen Zs and Millennials, who were seen as slow to decide on homeownership, are now forming the base of first-time buyers, acting with clarity and purpose on their homeownership needs.”
Faster digital underwriting, a credible pipeline from branded developers, and confidence in Hyderabad’s infrastructure are giving first-timers the confidence to sign, Singh added.
Confidence in Hyderabad Infrastructure
Hyderabad’s transport build-out is shortening commutes and lowering buyer risk on the city’s edge, with the sharpest impact in the west. Record office leasing in 2025 is anchoring new households near western job hubs for tech and GCCs as fresh corridors open. Metro Phase 2 extensions and the airport link have cleared key planning stages, with some approvals pending; the Regional Ring Road is advancing in phases. This pipeline is strengthening the case for outer-ring communities where sub-₹60 lakh homes remain available.
“Connectivity is a huge confidence booster,” Manu Singh said. “When buyers can see metro stations staked and corridors funded, they accept a slightly longer drive today for a more comfortable life tomorrow. It’s also giving premium developers the confidence to expand their footprint in Hyderabad, especially with approvals coming through at a faster pace.”
Rent vs EMIs – Hyderabad vs Bengaluru
Industry reports put Hyderabad’s EMI-to-income ratio near 30%—tighter than Bengaluru’s ~26%–27%—but the Telangana capital still offers more sub-₹60 lakh options on the periphery and faster approvals on several corridors, helping first-timers move quickly when they find value. Bengaluru, by contrast, paired firmer 2025 price gains with a still-favorable affordability base, sustaining demand but forcing more buyers to the city’s far east and north for lower entry tickets. “Bengaluru’s economics are strong, but Hyderabad’s combination of infrastructure visibility, lower congestion, and lender readiness is getting younger households over the line sooner,” Singh said.
Supportive Finance Environment: Lower Rates & Taxes
In 2025, the RBI cut the repo rate by 125 bps, and most new home loans are EBLR-linked, so banks typically pass cuts through to borrowers. Public rate cards indicate effective ranges ~7.5–8.7%, and RBI LTV rules still allow up to 90% financing for homes under ₹30 L (and 80% for ₹30–75 L), reducing the down-payment barrier. The rate cuts sit alongside cuts to income tax and GST through 2025, which have improved disposable incomes and stimulated appetite for consumption and investment.
Kotak Mahindra Bank, a leading financial institution in India, has been at the forefront of supporting these young homebuyers with flexible and competitive home loan options, making the dream of homeownership more accessible for many.
