Gujarat sees an increase in average mortgage size, while home loan accounts drop by 35% in FY25.

According to the data shared by the State Level Bankers’ Committee (SLBC) - Gujarat, a total of INR 58,399 crore in housing finance was disbursed in the state in FY 25, which is an 8.9% increment, compared to INR 53,590 crore in FY 24. However, despite this rise in total money lent, the total number of home loan borrowers has declined by a significant margin.

Reports indicate a drop of more than 35% in the total number of loan accounts, which now stands at 4.46 lakh from the previous 6.9 lakh mark. Experts suggest that fewer people are buying houses, but the ones who are purchasing homes are taking larger loan amounts. This increment in average mortgage size can be an indicator of either borrowers pushing their budget or costlier housing.

Ahmedabad-based developers and market experts say that the luxury housing segment is still experiencing high interest and demand, while the affordable and mid-income segments are witnessing a drop. This is a recurring pattern throughout the state. Some experts are even pointing out that increased home loan ticket size may not always mean homebuyers are picking better or bigger houses. It may also mean that they are simply paying higher rates for the same product.

Source: Economic Times