The number of home loan borrowers in this age group increased from 1,234 in FY24 to 2,290 in FY26. Their share of Kotak’s individual home loan borrowers also rose to 9% from 6% during the period.
This compares with a 26% increase in the number of home loan borrowers aged 30-45 years over the same period, making the 25-30 age group the fastest-growing younger cohort in Kotak’s home loan portfolio.
The data points to younger borrowers entering the housing market earlier, even as Gen Z has often been associated with greater preference for flexibility and renting.
“Homeownership continues to hold a special place in Indian households. What is changing is the age at which people are taking that decision. We are seeing younger borrowers entering the market with greater clarity and confidence than before,” said Nakul Saxena, Head – Home Loans, Kotak Mahindra Bank.
Why younger Indians are buying homes earlier
Kotak said the trend reflects changing attitudes towards homeownership among younger Indians. The bank attributed the shift to factors including higher education levels, earlier career progression and income growth.
For some borrowers, the first home may also be a more immediate, life-stage purchase rather than a long-term “forever home”, according to the bank. Younger buyers may choose properties that fit their current income and requirements, with the possibility of upgrading later.
The bank also pointed to changes in housing preferences following the pandemic, when extended periods spent at home brought greater attention to factors such as space, privacy, natural light, construction quality and community amenities.
However, the available data is specific to Kotak Mahindra Bank’s home loan book and does not by itself establish a broader trend across India’s entire housing or mortgage market.
The rise in younger borrowers nevertheless highlights a change in the age profile of at least one segment of the home loan market, with more borrowers in their 20s taking on what is typically one of the largest financial commitments of their lives.
“What we are seeing is greater conviction. Younger buyers are showing the confidence to act on their aspirations earlier in life rather than waiting years to feel completely settled,” Saxena said.