Archive · 22 May 2025
Home Loan Borrowers Decline in Gujarat, Mortgage Sizes Rise
In Gujarat, more money is being lent for homes, but fewer people are taking out loans.
The total amount of money lent increased, but the number of people borrowing decreased significantly.
This is because houses are getting more expensive, and people's incomes haven't kept up.
Some people are also choosing to invest in stocks instead of buying homes.
The loans that are being taken out are for larger amounts, but this doesn't always mean people are buying better homes; it just means they're paying more for the same ones.
Total housing finance disbursed in Gujarat rose 8.9% in FY25.
The number of home loan accounts dropped by over 35% in FY25.
The average home loan size is increasing.
A slowdown is evident in the affordable and mid-income housing segments.
Experts caution against interpreting larger loan sizes as solely a sign of prosperity.
- Who
- Home loan borrowers and housing finance companies.
- What
- A decrease in the number of home loan borrowers, but an increase in the total housing finance disbursed.
- When
- FY2025
- Where
- Gujarat
- Why
- Due to rising home prices, income stagnation, and shift in investments.
Luxury Housing
Affordable & Mid-Income Segments
Home Buying Trends
Luxury Housing
Fewer people are buying homes.
Affordable & Mid-Income Segments
Those who are purchasing homes are borrowing more.
Loan Size Interpretation
Luxury Housing
The increasing loan size is not necessarily a sign of growing prosperity.
Affordable & Mid-Income Segments
Increase in average home loan ticket size indicates increased property prices and affordability challenges.
- Total Housing Finance Disbursed in FY25
- Rs 58,399 crore
- Total Housing Finance Disbursed in FY24
- Rs 53,590 crore
- Increase in Total Finance Disbursed (FY25)
- 8.9%
- Number of Loan Accounts in FY25
- 4.46 lakh
- Number of Loan Accounts in FY24
- 6.9 lakh
- Drop in Loan Accounts
- 35%
- Increase in Average Home Loan Ticket Size (Past 5 Years)
- 66%