Analysing the age bracket of home seekers in a few of the top cities, the survey revealed that at least 62% of total property seekers polled in Bengaluru were aged 25-35 years. Hyderabad had the second highest number of property seekers (58%) aged within 25-35 years among all cities, including the metros and smaller ones, followed by 47% in Delhi-NCR within the same age group
Thanks largely to economic growth, easier lending norms and changing lifestyle trends, the age range for first-time homebuyers has dropped from the low 30s and 40s to the late 20s and 30s. Rapid proliferation of well-paid jobs, especially in the ITeS sectors, over the past two decades have resulted in more and more young people to qualify for home loans. Earlier homebuying is also supported by more competitive home loan lending terms as well as government incentives and subsidies for first-time buyers.
Also, dual-income households have become the order of the day, especially in the larger cities, and this too has helped young people to be able to afford to buy homes earlier than ever. Banks and other financial institutions are very open to lending to young, employed couples, as such home loans are considered well secured.
The lower property prices in tier 2 and tier 3 cities enable more young people to opt for homeownership there than in the metros. In the larger cities, the steep property prices mean that the time it takes longer to accumulate the higher down payments.
In a recent ANAROCK survey, real estate continued to be the most preferred investment asset class for over 59% respondents, a massive 49% of whom were in the age-bracket of 25-35 years. In the 2019 survey, this percentage was just 20% - confirming that millennials are now homebuyers. The trend is likely to continue in the future, as well.
Analysing the age bracket of home seekers in a few of the top cities, the survey revealed that at least 62% of total property seekers polled in Bengaluru were aged 25-35 years. Hyderabad had the second highest number of property seekers (58%) aged within 25-35 years among all cities, including the metros and smaller ones, followed by 47% in Delhi-NCR within the same age group.
The trend of millennials, who previously preferred to rent everything including homes, turning to convinced property buyers took hold during and after the Covid-19 pandemic.
The author is vice chairman of Anarock Group
