The ongoing growth in residential real estate and housing finance is being driven by strong end-user demand, continued urbanisation, progressive government initiatives, and rapid advances in digital infrastructure.
The rise of fintech platforms has played a key role by improving credit assessment processes, expanding access to credit, and enhancing the overall borrowing experience.
The total number of registered residential transactions in key cities, as recorded by the Inspector General of Registration (IGR), increased from 3.07 lakh units in FY 2019 to 5.44 lakh units in FY 2025—a 77% growth over the six-year period.
This upward trend is also reflected in the housing finance sector, which plays a critical role in supporting residential real estate. Property-linked loans, comprising home loans and loans against property, accounted for the largest share—63%—of total loan disbursals in FY 2025, according to insights from Urban Money.
The volume and value of home loan disbursals in top cities increased by 10% and 15%, respectively, in FY 2025. Notably, loans with ticket sizes above Rs. 1 crore accounted for 21% of total home loan disbursals during the year.
During the same period, the number of home loans disbursed in the top cities grew by 10% year-on-year. This included a 10% increase among male borrowers and a 9% increase among female borrowers.
In FY 2025, the total value of home loans disbursed in these cities rose by 15%, reflecting a shift towards premium homes as well as notable increase in property prices—up by approximately 55–60% on average since FY 2019. Year-on-year growth in disbursal value stood at 14% for men and a higher 23% for women.
Home loans above the Rs. 1 crore ticket-size accounted for 21% of total disbursals in FY 2025. In comparison, home loans below Rs. 45 lakhs accounted for 47% of disbursals, while those between Rs. 45 lakh and Rs. 1 crore made up 32%.
One in five home loans disbursed during FY 2025 was to a woman borrower, reflecting rising participation of women in property ownership.
The average home loan value in the top cities reached Rs. 74 lakh in FY 2025, marking a 5% year-on-year increase. For male borrowers, the average stood at Rs. 76 lakh (+3% YoY), while for women it was Rs. 70 lakh—growing at the fastest rate of 13% year-on-year.
Mumbai and Gurugram recorded the highest average home loan values, at Rs. 99 lakh and Rs. 88 lakhs respectively in FY 2025.
