Home loan demand is moving away from core metropolitan markets, with Tier-2 and Tier-3 cities emerging as the dominant contributors to growth in 2025, a report said. Tier-2 and Tier-3 cities recorded an 81 per cent year-on-year growth in home loan volumes in 2025, significantly higher than the 52 per cent growth seen in Tier-1 cities, fintech-led mortgage distribution platforms Urban Money said in a report. "This sharp expansion has increased the contribution of Tier-2 and Tier-3 markets to 64 per cent of total home loan volumes in 2025, compared to 60 per cent in 2024, highlighting a structurally broader and more distributed housing finance cycle," it said. The findings indicate that housing demand growth is no longer concentrated within a few large metros or premium price segments, it said. Instead, it said, improving infrastructure connectivity, expansion of employment hubs and sustained availability of mid-income housing are driving stronger homeownership demand across emerging