Reports indicate that young Indians especially millennials will be among the top purchasers of houses in India over the next few years, and they are the power segment when it comes to home purchase.
According to experts, the subsequent generation, or Gen Z, will invest in property.
A recent survey conducted by a market source revealed that 44% of young Indians are interested in purchasing a home within the next two years.
This figure is significantly higher than that of the global average. This trend is the result of three primary factors:
Increased Affordability for Young Indian Professionals:
With the emergence of affordable housing communities, many millennials are now able to acquire homes at significantly lower prices than previously attainable.
Furthermore, a rise in residential units around the country over the previous decade has made home ownership a viable financial option for this age group.
The trend has grown much more noticeable in the post-pandemic era. Millennials, particularly in the post-pandemic era, have emerged as a key homebuying group, accounting for a considerable portion of home purchases.
Initially, experts believed that this tendency was solely due to working from home (WFH) and that it would subside once employees returned to the office.
However, it is rapidly expanding. Furthermore, the fact that both couples are working and have a consistent income, has contributed to the surge in millennial homebuying.
As this generation ages and accumulates wealth, its impact on the real estate market is expected to grow much stronger.
Simple home loan policies Help Young Indians to Invest in Home:
It has become easier for young Indians to buy a home, thanks to attractive home loan plans with low interest rates and extended payback terms with flexible payment alternatives.
This has caused house-buying to rise and rental patterns to drastically decline.
The following are some of the best home loans and processing fees in 2025:
| S.No. | Bank Name | Interest Rate | Processing Fees |
| 1 | SBI Home Loan | 8.50% – 9.65% | 0.35% of the loan amount and a maximum of INR 10,000 + GST. |
| 2 | HDFC Home Loan | 8.75% – 9.65% | Up to 0.50% of the loan amount or INR 3,000, whichever is higher, plus applicable taxes. |
| 3 | Axis Bank Home Loan | 8.65% – 9.25% | Up to 1% of the Loan amount subject to a minimum of INR 10,000 |
| Upfront processing fee of INR 2,500 + GST. | |||
| 4 | ICICI Home Loan | 8.75% onwards | Up to 1.00% of the loan amount + GST. |
| 5 | Bank Of Baroda Home Loan | 8.40% – 10.60% | Up to 0.50% of the loan amount or a maximum of INR 7,500 + GST. |
| 6 | PNB Home Loan | 9.40% – 11.10% | 0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000, respectively. |
| 7 | LIC Housing Finance Home Loan | 8.50% onwards | Up to 1.0% of the loan amount + applicable GST. |
| 8 | Aditya Birla Home Loan | 8.60% onwards | Up to 1.0% of the loan amount + applicable GST. |
| 9 | Citibank Home Loan | 8% onwards | Up to 0.40% of the loan amount + GST. |
| 10 | Bandhan Bank Home Loan | 9.16% – 15.00% | 0.25% to 1.00% of the loan amount + applicable |
Young Indians evolving lifestyle:
Owning a home has taken precedence over expenses such as travel or leisure, as more individuals seek stability and security.
A combination of these factors has made it easier for millennials to become homebuyers, and this trend is projected to continue in the coming years.
Millennials and Generation Z, who have more money than their peers and are between the ages of 25 and 42, will naturally want to make long-term investments to secure their future.
Home investments or real estate have evolved as a dependable, long-lasting, and stable investment portfolio, with a guaranteed source of income through rentals and sales, even during times of crisis. Today’s youth is financially informed and understands the advantages and disadvantages of many investment options. Post-evaluation, they are making prudent decisions and, as a result, have exhibited a willingness to invest in homes.
In summary
The rise in property investments by young Indians, especially millennials and Gen Z, is influenced by several causes coming together. More affordable housing options and the rise of households with two incomes have made buying a home a practical goal for many people.
Simple home loan policies with good interest rates and flexible terms have made it easier to buy a house. Young Indians are now focusing more on safety and long-term security rather than spending freely. This change has made real estate a popular choice for safe investments.
This trend is not just temporary; it is a big change in the Indian real estate market. It will keep influencing the market for many years as these groups build their wealth and aim to ensure their financial security. These economic and social reasons make property investment an attractive option for young Indians who want to create a solid future.
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