India’s housing market is undergoing a generational shift, with Millennials and Gen Z emerging as the dominant force among new homebuyers.
According to a survey by BASIC Home Loan, the average age of home loan applicants has dropped to 25, compared with 35 and above just a few years ago. The data suggests that younger Indians are entering the property market far earlier than previous generations.
Millennials — typically defined as those born between 1981 and 1996 — and Gen Z, born between 1997 and 2012, now account for an estimated 90–95% of residential property purchases, the survey found. Industry observers say this marks a significant transformation in buying behaviour, financial planning and property preferences.
The rise of digital lending platforms and easier access to financial tools appear to be key drivers of the shift. Increasingly, prospective buyers are applying for home loans online rather than visiting physical branches, reflecting broader trends in India’s fast-growing fintech sector.
Lower documentation hurdles, faster approvals and digital verification systems have reduced friction in the borrowing process, making homeownership more accessible to first-time buyers. Analysts say this convenience resonates strongly with younger consumers who are comfortable with app-based financial services.
At the same time, rising incomes in technology, startup and professional services sectors have strengthened purchasing power among younger urban Indians. Many are also viewing property as a long-term investment and a hedge against inflation.
The growing participation of Gen Z in home purchase decisions — often alongside family members — signals changing attitudes towards early asset ownership. Rather than delaying purchases, many younger buyers are opting to secure property at the start of their careers.
With demand broadening and digital adoption accelerating, India’s home loan market is expected to expand further, driven largely by a generation that is reshaping not only how homes are bought, but when and why.
