Interestingly, until late 90s, many Indians preferred to buy homes using their savings rather than opting for home loans.
At least 37 percent of homebuyers serious on buying homes fall in the age bracket of 35-45 years, followed by 25 percent in the 45-55 years. At many as 20 percent are in the age bracket 25-35 years, 12 percent in the age bracket of 55 years and only 7 percent are under 25 years of age, as per a new report.
In MMR, 37 percent home seekers are in the age group of 35-45 years, followed by 28 percent in the 45-55 years. The fact that homes are costly here and call for huge down payments even if one avails of home loans causes a significantly high percentage of home seekers to fall in the latter age bracket. Nearly 16 percent are in the 25-35 age bracket, while another 12 percent - predominantly start-up honchos - fall in the below-25 age group, according to the ANAROCK's consumer sentiment survey H1 2019.
In Delhi-NCR, the trend is reverse. At least 37 percent homeseekers are in the age group of 45-55 years, followed by 26 percent in 35-45 years age bracket, it says.
In Bengaluru, more than half (52%) property seekers are in the age-bracket of 35-45 years. This coincides with the fact that the city has large population of professionals seeking home loans. At least 18 percent of Bengaluru's home seekers are in the age bracket of 45-55 years, and almost 21 percent are below 35 years of age.
As many as 39 percent of property seekers in Hyderabad and 28 percent in Pune are aged between 25-35 years. Both cities have a younger population who aspire to own homes early in life. However, in Pune the maximum (46%) share of home seekers are in the 35-45 years age bracket.
"The age of property buyers is an important demographic variable which Indian real estate stakeholders from developers to marketers and advertisement agencies must focus on. Over the past one decade, there has been a tectonic shift in not just the overall buying pattern but also in the age of property buyers," said Prashant Thakur, director and head – Research, ANAROCK Property Consultants.
In late 2010, buyers were largely in the age group of 35-45 years and 45-55 years, but the share of homebuyers in the 25-35 years age group was minimal. However, improved tax benefits motivated more working youths in this age bracket to opt for home loans. Millennials predominantly favoured paying EMIs to own a home over the 'dead' expense of rentals.
The ranks of the vital age demographic swelled steadily till about 2015-16. However, since then, many millennials are rethinking the notion of buying homes at this relatively early age. The tendency now is to avoid large investments and instead invest in other asset classes. However, this is by no means the larger norm, he said.
Interestingly, until late 90s, many Indians preferred to buy homes using their savings rather than opting for home loans. As a result, most homebuyers were in age group of 45-55 years or even closer to retirement - by then, they had accumulated sufficient wealth to support property purchase.In the 2000s, the winds of change blew and the age bracket of property buyers began to drop, coming down to 35-45 years. Home loans were readily available, and homebuyers warmed up significantly to the notion of using borrowed funds rather than depleting all their savings. The fact that home loans also carried attractive tax benefits certainly helped, too.