India’s Housing Finance Market: A Surge in Premium Home Loans and Empowered Borrowers
India’s housing finance market is experiencing robust growth, with a significant rise in high-value home loans and increasing participation from women borrowers.
Housing FinanceHome LoansPremium HousingWomen BorrowersUrbanisationReal Estate NewsJun 03, 2025
The figures point to a maturing market with rising aspirations, better access to credit, and a growing appetite for larger homes in India’s urban centres. Residential property transactions have grown consistently across key Indian cities. Data from Urban Money, based on information from the Inspector General of Registration (IGR), shows that registered residential transactions surged from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025—a 77% increase over six years. This sustained demand has been a catalyst for the housing finance sector, which continues to evolve rapidly to meet modern homebuyer needs.
Among the most striking insights is the rise in high-value home loans. Loans above Rs 1 crore accounted for 21% of total disbursals, signaling a surge in premium housing demand. In contrast, loans under Rs 45 lakh made up 47% of disbursals, while those between Rs 45 lakh and Rs 1 crore accounted for 32%.
Home loans above Rs. 1 crore now make up 21% of disbursals, reflecting rising demand for premium housing, according to Amit Prakash Singh, CBO of Urban Money and Co-Founder of Square Yards. “And with 1 in every 5 home loans going to a woman borrower, we’re clearly witnessing a shift towards more empowered and inclusive homeownership,” Singh added.
FY 2025 also saw increasing participation of women in homeownership. One in five home loans was disbursed to a woman borrower. Disbursal value growth was higher for women at 23% year-on-year, compared to 14% for men. The average home loan for women reached Rs 70 lakh, up 13% from FY 2024. This marks a clear shift in the gender dynamics of home financing in India’s urban markets.
The average home loan value across top cities hit Rs 74 lakh in FY 2025, rising 5% YoY. Mumbai and Gurugram continued to lead in ticket sizes. The average loan size for male borrowers stood at Rs 76 lakh, while for women it was slightly lower at Rs 70 lakh—but the latter saw faster growth.
Urban Money’s data shows that property-linked loans—including home loans and loans against property—comprised 63% of total loan disbursals in FY 2025. This underscores the continued importance of real estate in wealth creation and financial planning for Indian households.
The surge in housing finance is also being propelled by India’s rapid urbanisation, rising disposable incomes, and digitisation of financial services. “The market was largely fragmented, with long paperwork and delayed sanctions. So, we built a digital-first platform, forged strong partnerships with lenders, and scaled a robust on-ground network of 500+ offices and 50,000+ agents—enabling us to become India’s largest organised distributor of secured mortgages,” Singh added.
The combination of stable credit conditions, tech-driven lending platforms, and aspirational urban homebuyers is setting the stage for further growth. With property prices having risen by 55–60% on average since FY 2019, buyers are opting for longer tenures and larger loans, underlining confidence in long-term wealth creation through real estate. Urban Money’s findings serve as a barometer for India’s evolving housing landscape—premium homes, empowered borrowers, and seamless fintech-led experiences now define the country’s residential real estate financing story.
Frequently Asked Questions
What is the growth rate of home loan volumes in top Indian cities in FY 2025?
Home loan volumes in top Indian cities grew by 10% year-on-year in FY 2025.
What percentage of home loans are above Rs 1 crore in FY 2025?
Loans above Rs 1 crore now account for 21% of total disbursals in FY 2025.
How has the participation of women in homeownership changed in FY 2025?
One in five home loans was disbursed to a woman borrower, with a 23% year-on-year growth in disbursal value.
Which cities lead in high-value home loans?
Mumbai and Gurugram lead in high-value home loans, with an average loan size of Rs 76 lakh for male borrowers and Rs 70 lakh for women.
What role is fintech playing in the growth of the housing finance market?
Fintech is playing a crucial role by providing digital platforms, forging strong partnerships with lenders, and scaling a robust on-ground network, enabling faster and more efficient loan disbursals.
Related News Articles
Pune Porsche Crash: A Minor's Fate Hangs in Balance after Fatal Accident
A minor has been released from observation home after the High Court declared the orders sending him there as illegal. The minor was involved in a Porsche crash that killed two people in Pune's Kalyani Nagar area.
Railway Stocks on a Roll: A 50% Surge in Just Two Weeks
Railway stocks have been on a tear, with some gaining as much as 50% in just two weeks. What's driving this rally?
Shinryo Corp Acquires GMP Technical Solutions, Strengthening Clean Room Partition Market Presence
Shinryo Corp has acquired GMP Technical Solutions, a clean room partition maker, at an equity valuation of Rs 185 crores, expanding its presence in the semiconductor assembly and manufacturing industry.
Sectoral and Thematic Mutual Funds Lead the Way in Folio Addition
Technology and Artificial Intelligence are transforming the Indian real estate sector, while sectoral and thematic mutual funds saw the highest folio addition in July.
Dharavi Development Project: A Real Estate Scam of Epic Proportions?
Congress MP Varsha Gaikwad accuses Maharashtra government of favoring Adani Group in Dharavi redevelopment project, calling it real estate's biggest scam.
Indian Aviation Industry: From Merger to Modernization
The Indian aviation sector is undergoing a significant transformation, moving from mergers to modernization. This shift is driven by a combination of strategic business decisions, technological advancements, and government policies. Stay updated with the