Gujarat’s housing market is showing a clear shift in the way people are borrowing for homes. The number of new home loan accounts has fallen sharply, even as the amount of money being borrowed has increased. The trend suggests that while fewer people are entering the housing loan market, those who are still buying homes are taking significantly larger loans.
The latest data from the State Level Bankers’ Committee (SLBC), Gujarat, shows that fresh home loan accounts fell by 28% to 93,716 in the June quarter of 2026, compared with the same period last year. At the same time, total home loan disbursements increased by 24% to ₹17,600 crore.
The average loan size also jumped sharply, rising from ₹10.9 lakh to ₹18.8 lakh, an increase of around 72% in a year.
Fewer borrowers, but much larger loans
The numbers show how sharply Gujarat’s housing finance market has changed.
In the first quarter of 2024, there were 1,01,459 new home loan accounts. The number increased to 1,30,114 in 2025, but then dropped to 93,716 in 2026.
Despite the fall in borrowers, the total value of home loan disbursements continued to rise. Disbursements increased from ₹13,433 crore in 2024 to ₹14,221 crore in 2025, before climbing further to ₹17,600 crore in 2026.
This means banks are lending more money overall even though the number of new borrowers has fallen.
The biggest change is visible in the average ticket size. The average home loan stood at around ₹13.2 lakh in 2024, fell to ₹10.9 lakh in 2025, and then surged to ₹18.8 lakh in 2026.
Rising property prices push up borrowing
The trend points to growing pressure on home buyers, particularly those looking for properties in and around major urban centres.
As property prices and construction costs rise, buyers need to borrow more to purchase homes. At the same time, many smaller or middle-income buyers may be finding it increasingly difficult to enter the housing market.
The result is a widening gap between the number of people taking home loans and the amount being borrowed by those who can still afford to buy.
Housing experts say the market appears to be splitting into two groups: buyers with stronger purchasing power who continue to purchase expensive homes, and price-sensitive buyers who are finding affordability increasingly difficult.
Ahmedabad and other cities see expensive housing
The affordability pressure is particularly visible in established neighbourhoods of Ahmedabad and other major urban areas.
According to real estate sector observations, areas such as Shela, South Bopal, Godhavi, Shilaj, Gota, Ognaj, Thaltej, Tragad and Nikol have seen significant increases in property prices.
In some locations, the price of a three-bedroom apartment has reached around ₹1 crore, making home ownership difficult for many salaried and middle-income families.
The situation is not limited to Ahmedabad. Rising land and construction costs across Gujarat have pushed up the overall cost of building and buying residential property.
Demand remains strong among high-income buyers
Despite the decline in the number of home loan accounts, demand has not disappeared.
Higher-income buyers and people with greater purchasing power continue to take larger loans. These include professionals in the finance sector, business owners and high-net-worth individuals who have greater capacity to absorb rising property prices.
The demand remains particularly strong in established neighbourhoods, where buyers are willing to pay a premium for location, connectivity and existing infrastructure.
Redevelopment is also creating additional demand in some parts of Ahmedabad because buyers often prefer established localities with better access to schools, workplaces, transport and other facilities.
The picture is different outside major cities
The housing market outside major urban centres presents a different picture.
In smaller towns and peripheral areas, affordability remains a key factor. Buyers in these markets are generally more price-sensitive, meaning that a sharp increase in property prices can quickly affect demand.
This creates a challenge for developers. If housing prices continue to rise, projects that depend on a large base of middle-income and price-sensitive buyers could face weaker demand.
At the same time, developers may find it difficult to reduce prices because land, labour and construction costs have also increased.
What the numbers mean for Gujarat’s housing market
The latest figures do not necessarily mean that Gujarat’s housing market is collapsing. Instead, they point to a change in the profile of the home buyer.
The sharp rise in the average loan size, alongside the fall in the number of new loan accounts, suggests that a smaller pool of buyers is borrowing considerably more.
In simple terms, fewer people are taking home loans, but those who are taking them are borrowing much larger amounts.
This could be a sign of growing affordability pressure, especially for first-time buyers and middle-income households.
The coming quarters will show whether the decline in new home loan accounts is temporary or marks a longer-term change in Gujarat’s housing market. For now, the data highlights a growing divide between rising property prices and what ordinary home buyers can comfortably afford.
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