Data from Kotak Mahindra Bank reveals a sharp rise in young Indian homebuyers aged 25 to 30, signalling a shift in ownership perceptions and an earlier market entry driven by changing priorities, higher education, and income growth.
Gen Z is increasingly stepping into India’s housing market earlier than expected, with data from Kotak Mahindra Bank showing a sharp rise in younger home-loan borrowers and a broader shift in how first-time buyers view ownership. According to the bank’s figures, the number of borrowers aged 25 to 30 climbed 86% between FY24 and FY26, from 1,234 to 2,290, while Gen Z’s share of Kotak’s individual home-loan customers rose from 6% to 9% over the same period. By contrast, borrowers aged 30 to 45 increased by 26%, suggesting the younger cohort is expanding faster than the core middle-aged segment.
Kotak Mahindra Bank’s home-loan page shows that the lender pitches financing to salaried workers, self-employed professionals and entrepreneurs, with loan-to-value ratios of up to 90%, repayment periods of up to 25 years and interest rates starting at 7.60% a year. The bank also promotes a hybrid rate structure that combines a fixed-rate period with a floating-rate phase, alongside online calculators and guidance tools designed to help buyers assess affordability and tax benefits. That mix of product features appears to fit a younger customer base that is choosing smaller, earlier purchases rather than waiting for a long-planned “forever home”.
Nakul Saxena, head of home loans at Kotak Mahindra Bank, said the family priority attached to ownership remains strong even as the age of entry falls. He said younger borrowers are coming to the market with more clarity and confidence, and the bank argues that the pandemic accelerated the change by making space, privacy, natural light and community living more important to households that spent long periods at home. Kotak also links the trend to higher education, earlier career progression and faster income growth, which it says are helping young Indians reach ownership milestones sooner than previous generations.
The shift is also changing the way young buyers think about the first purchase. Rather than waiting until they can afford a large home that matches every future need, many are opting for properties that suit their current budgets and life stages, treating the initial purchase as a first step rather than a final destination. Kotak’s support pages, which cover eligibility, application status, charges, prepayment and tax certificates, suggest the bank is positioning itself for borrowers who want straightforward guidance as well as financing.
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