The age at which Indians are buying their first homes appears to be falling, with Gen Z emerging as the fastest-growing segment among younger home loan borrowers, according to data from Kotak Mahindra Bank.
The bank said the number of home loan borrowers aged 25-30 years increased 86% between FY24 and FY26, rising from 1,234 to 2,290. Their share of Kotak’s individual home loan borrowers also increased from 6% to 9%, while borrowers aged 30-45 years grew 26% during the same period.
Kotak Mahindra Bank Head – Home Loans NakulSaxena said younger borrowers were entering the housing market with greater clarity and confidence. The bank attributed the trend to factors including higher education levels, earlier career progression, income growth and changing housing priorities following the pandemic.
Younger buyers are also increasingly purchasing homes suited to their current budgets and life stages rather than waiting to buy larger “forever homes”, the bank said. Dual-income households and financial contributions from young professionals are also helping accelerate homeownership decisions.
In Kolkata, the trend could support continued demand from younger salaried buyers, particularly for homes aligned with current affordability and lifestyle requirements. The shift towards earlier ownership may also influence developers and lenders to focus more on first-time buyers.
The bank said the rise in younger borrowers indicates a broader change in India’s housing market, with homeownership increasingly becoming an early financial milestone for Gen Z.