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Affordable Housing Booms in Small Towns as First-Time Buyers Drive Market Growth
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News18•07-10-2026, 16:24
Affordable Housing Booms in Small Towns as First-Time Buyers Drive Market Growth
- •Around 68 percent of all active home loans in India are related to affordable housing as of August 2026.
- •Nearly 21 percent of affordable housing loans were disbursed to first-time borrowers entering the formal credit system.
- •Tier-2 and Tier-3 cities along with regions in Uttar Pradesh and Rajasthan are rapidly emerging as new real estate hotspots.
- •Women accounted for 31 percent of the total amount disbursed in affordable housing loans between August 2025 and August 2026.
- •Micro LAP loans up to Rs 25 lakh against mortgaged property grew significantly as people leverage assets for small businesses.
Key Questions Answered
According to a report by Credit Information Services (CRIF), about 68% of all active home loans in the country are related to affordable housing as of August 2026.
Between August 2025 and August 2026, women accounted for 31% of the total amount disbursed in affordable housing loans.
While about 79% of affordable housing loans are concentrated in the top 10 states, the highest activity is visible outside major cities in Tier-2 and Tier-3 towns, with Uttar Pradesh and Rajasthan emerging prominently.
