Archive · 20 Nov 2025
First-Time Home Buyers: Navigating Finances and Sentiment in 2025
In 2025, more young people are buying homes in India.
To avoid debt, they should save money, plan their budget, and consider all costs.
Good credit and a stable income help too.
Owning a home means paying for maintenance and taxes, so it's important to be ready financially and emotionally.
Home buying sentiment has strengthened in 2025, driven by rising incomes and consumer confidence
62% of first-time buyers in urban India are under 35, with 40% choosing properties below ₹75 lakh
Experts recommend saving at least 20% for down payment and maintaining an emergency fund for 6-9 months of EMIs
Buyers should consider all-in costs, leverage tax-saving avenues, and maintain good credit health
Ongoing responsibilities like maintenance and property taxes must be factored into monthly budgets
- Who
- First-time home buyers in urban India, especially those under 35
- What
- Navigating home buying sentiment and finances in 2025
- When
- Currently, with a strengthening home buying sentiment
- Where
- Urban India
- Why
- To make the biggest financial decision of their lives without falling into debt
Emotional Appeal vs. Financial Planning
Short-term vs. Long-term Mindset
Home buying decision
Emotional Appeal vs. Financial Planning
Driven by emotional appeal
Short-term vs. Long-term Mindset
Informed by financial planning and long-term investment considerations
- Average age of first-time buyers
- Under 35
- Preferred property value
- Below ₹75 lakh
- Recommended down payment
- At least 20% of property value
- Emergency fund recommendation
- 6-9 months of EMIs
- Average home loan interest rates
- Between 8-9%