According to data from Kotak Mahindra Bank, the number of mortgage loan clients aged 25 to 30 has increased from 1234 to 2290. Consequently, the share of Generation Z in the mortgage portfolio has risen from 6 percent to 9 percent.
Traditionally, it was believed that people made housing purchase decisions after the age of 35 or 40. However, this trend is now changing as the younger generation in India is making housing acquisition decisions at an earlier age.
The bank's data shows that between 2024 and 2026, the number of mortgage clients in the 25–30 age group increased by 86%, reaching 2290 individuals. One factor contributing to this growth is the rapid development of the real estate sector in recent years, which has become an attractive investment option, motivating young buyers.
Furthermore, the desire not to live in rented accommodation has also strengthened the youth's aspiration to own their own home.
These changes are evident not only in statistics but also in the mentality of the youth. Young people are now realizing the dream of owning a home by taking out mortgage loans at an age when they previously were preparing for a purchase.
According to Kotak, the share of Gen Z in the mortgage portfolio grew from 6% to 9% in just two years, representing a jump of 50%. The COVID-19 pandemic also influenced people's priorities regarding housing, transforming the home from a mere place of residence into an important decision related to work, family, and future security.
Key reasons for this shift are considered to be improved career prospects at a younger age, increased income, and faster professional realization. The bank notes that young couples are purchasing homes using combined income, and some young individuals are helping realize their family's dream of a home.
Interestingly, young buyers are not postponing their decision while waiting for a larger property; many are purchasing their first home based on current needs and budget, viewing it as the first step toward financial stability. Statistics also show a 26 percent growth among mortgage clients aged 30–45, but the increase among clients aged 25–30 was significantly higher.
Overall, the perception of the age for buying a home, which was previously associated with 35 or 40, is changing. The growing number of young people acquiring housing at an early age indicates that the new generation is making decisions about its future with greater clarity and confidence.