Mumbai and Gurugram Lead India’s Home Loan Market with High Average Loan Sizes
Residential property registrations and home loan disbursals in India’s top cities have seen significant growth, driven by rising housing demand and price appreciation. Mumbai and Gurugram lead the way with average loan sizes of ₹99 lakh and ₹88 lakh, respectively, in FY25.
Home LoansProperty PricesUrban Real EstateWomen BorrowersFinancial IndependenceReal Estate MumbaiJun 03, 2025
Mumbai and Gurugram are leading India’s premium housing finance boom, with average home loan sizes hitting ₹99 lakh and ₹88 lakh, respectively, in FY2025. With one in five loans now exceeding ₹1 crore, India’s housing finance landscape is seeing both deeper borrowing and broader participation, revealed the data.
The average home loan size in top cities is Rs 74 lakh. Loans disbursals worth ₹1 crore and above now account for 21% of the market, up from previous years. Loans under ₹45 lakh make up 47% of total disbursals, showing strong demand in both budget and premium segments. Additionally, 1 in 5 home loans go to women, signaling a growing push for financial independence and asset ownership among women in urban India.
Women borrowers are making a strong mark on the housing finance map. In FY25, the total loan value disbursed to women grew by 23%, and the average loan size for women increased to ₹70 lakh, a 13% year-over-year growth, outpacing men. The share of loans to women is 20% of total disbursals.
“We’re clearly witnessing a shift toward more empowered and inclusive homeownership,” said Amit Prakash Singh, CBO of Urban Money and Co-Founder at Square Yards. This shift is not just about the numbers but also about the changing dynamics of who is buying homes and why.
According to Urban Money, Mumbai and Gurugram top the chart for average loan sizes. Premium housing is fueling the demand for bigger loans. India’s housing prices have risen 55–60% since FY 2019, and this is reflected in the increased ticket size of loans. Urban aspirations are also climbing, with more buyers opting for luxury or larger apartments.
Residential property registrations across key Indian cities have continued to rise steadily in recent years. Data from Urban Money (FinTech venture by Square Yards) shows that the total number of registered residential transactions in key cities increased from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025—a 77% growth over the six-year period. This upward trend is also reflected in the housing finance sector, which plays a critical role in supporting residential real estate.
Urban Money's latest trends and insights for FY 2025 highlight key shifts in the home loan segment across India’s major residential real estate markets. Property-linked loans, comprising home loans and loans against property, accounted for the largest share—63%—of total loan disbursals in FY 2025. During the same period, the number of home loans disbursed in the top cities grew by 10% year-on-year. This included a 10% increase among male borrowers and a 9% increase among female borrowers.
In FY 2025, the total value of home loans disbursed in these cities rose by 15%, reflecting a shift towards premium homes as well as a notable increase in property prices—up by approximately 55–60% on average since FY 2019. Year-on-year growth in disbursal value stood at 14% for men and a higher 23% for women. Home loans above the Rs. 1 crore ticket-size accounted for 21% of total disbursals in FY 2025. In comparison, home loans below Rs. 45 lakh accounted for 47% of disbursals, while those between Rs. 45 lakh and Rs. 1 crore made up 32%.
One in five home loans disbursed during FY 2025 was to a woman borrower, reflecting rising participation of women in property ownership. The average home loan value in the top cities reached Rs. 74 lakh in FY 2025, marking a 5% year-on-year increase. For male borrowers, the average stood at Rs. 76 lakh (+3% YoY), while for women it was Rs. 70 lakh—growing at the fastest rate of 13% year-on-year. Mumbai and Gurugram recorded the highest average home loan values, at Rs. 99 lakh and Rs. 88 lakh, respectively, in FY 2025.
Frequently Asked Questions
What is the average home loan size in top Indian cities in FY25?
The average home loan size in top Indian cities in FY25 is Rs 74 lakh.
Which cities lead in average home loan sizes in FY25?
Mumbai and Gurugram lead in average home loan sizes in FY25, with average loan sizes of ₹99 lakh and ₹88 lakh, respectively.
What percentage of home loans exceeded ₹1 crore in FY25?
21% of home loans exceeded ₹1 crore in FY25.
How much did the total loan value disbursed to women grow in FY25?
The total loan value disbursed to women grew by 23% in FY25.
What is the average loan size for women borrowers in FY25?
The average loan size for women borrowers in FY25 is ₹70 lakh, with a 13% year-over-year growth.
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