27 Is the average age of new home buyers in India

 * New Home Buyers are in Their 20 to 30s,  Due to Higher Salaries, Better Financial Resources..!

* 27 Is the average age of new home buyers in India

down from 41 a decade ago..!

* Growing trend of women homeowners..!

* There is also an increase in double income households, with both husband & wife working..!

The new real estate buyers are in their 20 to 30s due to higher wages, better financial resources

by Ankita Ramgopal

Houses in India are now getting younger owners. What was earlier tagged as a luxury for the middle aged, the demographics of the real estate buyer has been changing in favour of the youth.

Mr. Nikhil Jain, CEO, Ramprastha Group said, “The average age of buyers has now dropped to 27, and nearly 40% our buyers are in this category” 

Mr. Vineet Singh, Executive Vice President and Business Head - Realty Website 99acres.com said, ''This is a significant drop from the average age of 41 years a decade ago''.

Today’s 20 to 30 year-olds have better access to financial resources such as housing loans & mortgages, with banks / housing finance Companies (HFCs) falling over each other trying to sell loans with various incentives.

Mr. Santhosh Kumar, CEO, operations, at Jones Lang LaSalle India said,  “More & more young people in the 22 age  to 30 age group are investing in residential properties via housing loans”

Growing trend of women homeowners..!

Industry experts said, ''That youngsters have become more independent in their outlook, and with enough savings they can afford to buy their own house. There is a growing trend of women homeowners in the same age group as well.

Mr. Santhosh Kumar also said, “We attribute this to the availability of more realistic saving instruments, a reorientation towards the nuclear family format, an increased orientation towards future stability & higher aspiration levels. It is clear that Indian youth today has become financially savvier,”

The nuclear family format has resulted in lesser expense and more income in the current Indian households.  

Double-income households..!

There is also an increase in double-income households, with both husband and wife working - also known as the DINK (Double Income No Kids) group. These people have been earning for 5 to 7 years, and their corporate jobs allow them easy access to long-tenure home loans, thus reducing their EMI (Equated Monthly Instatalment) payout.

The main reasons for this trend could be that not only have Indians begun earning at a younger age, they are also earning a lot more money at a younger age.

Average Home Loan Size..!

Mr. Vineet Singh also told, “If you open the bank loan books today, you will notice that the average housing loan size falls in the category of Rs. 18 lakh  to Rs. 20 lakh. These youngsters who are investing in real estate prefer taking small loans and buying small homes for themselves. This has been the trend observed in metros and tier-1 cities across India. Nearly  80% of this market chooses to go in for flats. There is a latent demand for apartments in the Rs 25 to lakh  to Rs. 75 lakh price range among these younger buyers"

Young couples prefer investing in condominiums, rather than independent housing due to factors such as pricing a& ease of living.

Mr. Nikhil Jain added “People, in general, are moving away from individual houses. The four-tier security system set up in most condominiums today provides an assurance to the buyer. Also, condominiums ensure basic services like power backup to the resident.”

Young Investors ..!

Besides the real estate buyers who actually use the property they have bought, there seems to be an influx of young investors in the Indian market as well.

Mr. Brijesh Bhanote, Director -Sales and Marketing, The 3C Company said, “ 95% of the market of young buyers has been buying for end use. However, over the past 18 months we have noticed a trend of young investors entering the market. These youngsters have picked up on the bullishness of the realty market and chosen to invest for more profits.”

Src: Business World 

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