AHMEDABAD: While Gujarat’s housing finance numbers are on the rise, homebuyer sentiment remains stagnant. According to SLBC data for the September 2025 quarter, housing loan disbursements have increased by 14% year-on-year, climbing from ₹14,266 crore to ₹16,264 crore. However, the number of borrowers has only grown by 7%, from 95,532 to 1.02 lakh.
This disparity highlights a healthy flow of credit but a lack of purchasing momentum, particularly among mass-market buyers.
Banking sources indicate that most lending occurs in major cities such as Ahmedabad, Vadodara, Surat, and Rajkot.
“Despite substantial lending activity, there is a notable decline in demand for new homes, especially in the affordable segment. This trend has persisted for several months. Therefore, although growth is occurring, it is at a slower pace,” commented a banking official.
“Mid-income and first-time buyers are increasingly postponing purchases due to rising property prices,” the official added. Developers acknowledge that, despite new launches, interest in various projects in the city remains weak. This is particularly evident in the affordable housing sector, which was once Gujarat’s strongest demand area.
Tejas Joshi, president of Credai-Gujarat, remarked, “Currently, demand for 3BHK and 4BHK units has decreased, and both the affordable and premium housing markets are experiencing slower sales. Over the past six to seven years, commercial real estate has outperformed residential real estate. However, with the Commonwealth Games 2030 approaching in Gujarat, we anticipate a significant influx of people moving to Ahmedabad. Inquiries are already increasing, and the necessary infrastructure development for athletes, students, and support staff will boost overall housing demand. We expect renewed interest, particularly in the affordable segment, in the near future.”
As construction and land costs continue to rise, project prices are becoming unattainable for budget-conscious buyers, leading to a significant reduction in supply within this category.
Industry analysts suggest that Gujarat’s housing finance landscape currently reflects a market expanding in value rather than volume, propelled by a trend towards fewer, yet higher-value loans.
