RBI Governor, Raghuram Rajan’s directives for real-estate developers to go easy on the property prices in major Indian cities has been a much-welcome relief to the salaried class and young working professionals. Affordability had long been an issue for them as salary increments never matched the high-rising housing market prices. On a macro level too, this proposal has the potential to upraise the real-estate sector from its long-sluggish growth to a more resilient and progress-friendly culture.
Property prices for the past 3 years have let only the double-income families, businessmen, and some successful entrepreneurs account for the percentage of home buyers, while the working professionals had been moving at a snail-pace with market fluctuations. Albeit with lowest ever interest rates since 2011, sales in India’s popular cities fell by 4% (low sales volume of 2,61, 260 units across major cities) in June 2015 as compared to 2014.
However, if and when compared to the real estate trends four to five decades back, things look much better now as we have young home buyers across top cities leveraging the availability of high disposable income, finance options, several investment categories coupled with a stable salary – changing the whole affordability scenario in the market.
Speaking of finance options, home and personal loans and tax benefits have contributed majorly in helping people fulfill their home-buying needs. But what are these needs and who are these buyers?
The Age Bar
They are not the people in their late 50s, retired professionals or even HNI, NRI and business owners. More and more people in their prime of youth (25-35) are taking their financial goals way too seriously, among which financial independence is one. Early retirement or a stable bank balance is what most of the youth is looking at today, and chasing life goals like buying a dream home does not sit well with the idea of retirement (even if it is by 40).
The average age of a home buyer is in the mid-30s today as opposed to the mid-50s a couple of years back. In fact, people in their mid to late 20s are majorly investing in their first homes.
Expectations and Needs
Not too long ago what home buyers sought for was a good-looking home with basic facilities of power and water connection in place, where one would not have to tackle seepage issues. Increased global exposure and developmental grandiose, both infrastructural and economical, have however, led to the youth becoming more aspirational, preferring a stylish, convenient, comforting and luxurious lifestyle.
Modern amenities like infinity pools, tennis/squash courts, beautiful landscaped gardens, a well-equipped gymnasium, clubhouse, outdoor kitchen, wide home theatres and the like have become the upcoming trend in young home buyers’ wish list.
Most young homebuyers are first-time buyers too, who prefer to buy ready-to-move-in property and not under-construction properties as though the latter is more affordable, the possession delays have made home buyers consider the former.
A prime locality and budget are also some important factors for buyers. Locations well-connected to the mainstream city with schools, hospitals, and recreational centers nearby are the main lookouts for these buyers. The proximity of home to workplace and the space it occupies are other considerable options.
Well-connected integrated townships with open spaces spanning a few million square yards, attractive luxurious amenities like tennis courts, jogging tracks, health centers, game areas and more for a holistic and well-balanced lifestyle are the go-to choice for any home buyer today. Such spaces that celebrate life both in thriving suburbs and posh localities in cities are what real-estate players like Godrej Properties, Rajesh LifeSpaces, Omkar Realtors and Indiabulls Group have achieved at creating. As home buyers become more demanding, the realtors too build to create legacies.
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Published Date: May 30, 2016 06:30 pm | Updated Date: May 31, 2016 12:40 pm