Home ownership has emerged as the top five-year financial goal for 31% of lower-middle-class Indians, according to Home Credit India's fourth edition of 'The Great Indian Wallet 2026' survey. As reported by Mint, this share has risen by 8 percentage points from last year, making home ownership the fastest-growing financial goal tracked by the study. The findings suggest that households are directing their financial surplus towards long-term asset creation rather than immediate consumption, with 40% of female respondents considering buying a house as a five-year priority, compared with 29% of men. This aligns with broader global trends, as European property markets continue to attract investors seeking residence permits through real estate investment, with countries like Greece and Latvia offering entry points starting at just €250,000.
The study's Financial Well-Being Index rose to 40 in 2026 from 34 in 2025, reaching its highest level since the index was introduced in 2023. According to Mint, 85% of respondents said they were confident of achieving their personal financial goals over the next five years, while 87% remained hopeful that their overall financial situation would improve. The savings component of the Financial Well-Being Index rose sharply to 31 in 2026, from 23 in 2025, with the investment score climbing to 31 from 17. Half of those surveyed said managing regular household expenses had become less stressful, while 47% said unexpected expenses had become easier to handle following GST-related price changes. This confidence is reflected globally, as European property markets show strong performance with house prices in the EU rising 5.5% year-on-year in Q3 2025.
The average respondent reported monthly income of ₹35,000 against essential expenses of ₹21,000, leaving around ₹14,000 before accounting for other spending. As reported by Mint, 53% of respondents were able to save money after meeting their monthly expenses, though 36% said they could manage expenses but had nothing left to save, while 11% said they needed to borrow to meet expenses. Gen Z recorded the highest saving rate at 58%, followed by millennials at 53%, while Gen X recorded a lower 44%, reflecting higher household responsibilities. This savings capacity supports the growing trend of home ownership, as European property markets offer investment thresholds starting at €250,000 for residence permits, making international property investment more accessible for Indian investors.
While buying a house emerged as the leading goal at 31%, starting or expanding a business followed at 25%, with saving for children's education cited by 14%. According to Mint, 82% of respondents identified affordable access to credit and digital financial tools as an important enabler of financial security. The survey found that 62% of respondents said they were more confident using credit or EMIs for planned purchases following GST-related changes, with 63% feeling more confident about working towards future financial goals. European property markets provide additional investment options, with rental demand remaining strong across many EU countries, offering investors both capital appreciation and regular income streams through long-term rental properties. The EU market offers rental yields in Athens often ranging between 4% and 6%, though Golden Visa investors are restricted from short-term rentals like Airbnb.
The improvement in financial well-being varies across demographics and geography, with Tier-1 and Tier-2 cities outperforming metros on several measures, while the North, East and West reported stronger improvements than the South. As reported by Mint, income has broadly stabilised at 45 in 2026, compared with 46 in 2025, indicating that the improvement is not simply due to higher earnings but stronger savings and controlled essential expenses. The findings point to a broader change in household priorities, with financial relief increasingly being channeled towards savings, investments and durable assets, supported by the growing confidence in European property markets where house prices have risen 63.6% over the longer term between 2015 and Q3 2025. European residence by investment programmes offer minimum thresholds starting at €250,000 in Greece and Latvia, with Cyprus requiring €300,000 for luxury properties, making international investment more accessible for Indian investors.
