Top 10 Best Private Banks in India List 2025
January 09, 2025
The Indian housing finance narrative in 2025 moved decisively beyond traditional metropolitan strongholds. A recent “UrbanMoney Homebuyers Credit Pulse” report highlights that Tier-2/3 cities fuelled the majority of home loan activity, contributing approximately 64 per cent of total volumes, underscoring a broadening of the mortgage market beyond Tier-1 clusters.
This shift reflects rising affordability pressures in large urban centres and a parallel rise in residential demand from smaller cities where housing costs and living expenses remain comparatively moderate. UrbanMoney’s analysis shows home loan growth in these emerging markets accelerated by roughly 81 per cent YoY, outpacing the 52 per cent pace in major metros.
Strategic improvements in infrastructure, enhanced connectivity and expanding infrastructure of employment hubs have enabled first-time and mid-income homebuyers to pursue homeownership in cities such as Ahmedabad, Kochi, Jaipur and Surat. These factors have escalated credit-borrowing and broadened geographic distribution of housing finance.
For fintech platforms and housing finance stakeholders, this trend highlights a matured demand landscape where non-metro markets are central to India’s future growth story in housing credit.
