Thanks in large part to economic growth, easier lending norms and changes in lifestyle trends, first-time home buyers’ age range from lows in the 1930s and 1940s to decline in the 1920s and late 1930s. Over the past two decades, the rapid spread of high-paying jobs, especially in the ITES sector, has led to an increasing number of young people eligible for home loans. Early home purchases also received more competitive housing loan terms as well as government incentives and subsidies from first-time home buyers.
In addition, dual income families have become a day’s order, especially in larger cities, which also helps young people to buy homes earlier than ever before. Banks and other financial institutions are very willing to borrow loans to young, employed couples because these home loans are considered as secure.
The lower real estate prices in the 2nd and 3rd cities allow young people to choose ownership of their homes there. In larger cities, steep real estate prices mean it takes longer to accumulate higher down payments.
In the recent Anarock survey, real estate remains the most popular investment asset class for more than 59% of respondents, with 49% of whom are 25-35 years old. In the 2019 survey, that percentage was only 20% – confirming that millennials are now homebuyers. Future trends may continue as well.
The survey shows that analyzing the age range of family seekers in some top cities shows that at least 62% of the total seekers seeking real estate in Bangalore are 25-35 years old. Hyderabad is among all cities, including metropolitan and smaller cities, with real estate searchers between 25-35 years old (58%), followed by 47% of the Delhi NCR in the same age group.
Millennials, who had previously preferred to rent all items including homes, convinced property buyers to put aside during and after the 19th pandemic.
The author is the vice chairman of Anarock Group
