Buying Property In 2025? Here's How Much Indians Are Borrowing - And Why Women Are Leading The Shift

 India's residential real estate market is entering a new era, with premium housing, empowered borrowers, and fintech-led financing driving home loan growth.

According to the latest insights from Urban Money, a fintech venture by Square Yards, home loan volumes in top cities grew by 10% year-on-year, while the total disbursed value rose by 15% in FY 2025. A notable trend: home loans above Rs 1 crore now make up 21% of total disbursals.

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.

A Six-Year Surge in Housing Demand
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.

Premium Homes in Focus: Rise of Rs 1 Crore+ Loans
Urban Money’s FY 2025 report, "Housing Finance – The Quiet Catalyst Driving India’s Property Market", uncovers several key trends across leading cities such as Bengaluru, Gurugram, Noida & Greater Noida, Hyderabad, Mumbai, Thane, Navi Mumbai, and Pune.

Among the most striking insights is the rise in high-value home loans:
Loans above Rs 1 crore accounted for 21% of total disbursals, signalling 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,” said 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.”

Women Borrowers Gaining Ground
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.

City-Wise Trends: Mumbai, Gurugram Lead
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.

Property-Linked Loans Dominate
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.
 

Fintech & Urbanisation Fueling Growth
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.

Outlook: Housing Finance Set for Further Upside
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.

Read More - Is There a Bank Holiday This Week? Here's What the RBI Calendar Says
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.