To own a home is a dream that every individual keeps deep inside his heart. It is a place where one eat, sleep, relax & more importantly create a lifestyle of his aspirations. But as every good thing comes at a price tag, so does owning a dream home. Often it requires one to plough deep into their lifetime savings & hence mostly individuals prefer to take up the onus at a later stage of their life.
But now days this is no more the case. Thanks to higher income & the various home loan & finance schemes, more numbers of youth in India are opting to purchase a home. Today it is no more a privilege that is restricted to individuals who are middle aged or above. The millennial crowd (individuals who were at their adulthood during 2000) in India that ideally falls within the age bracket of 25-34 are actively shouldering their senior counterparts to contribute towards the country’s rising home demand dynamics.
There are many factors that are enticing the millennials to opt out to purchase homes. Besides the charm of owning a house at the dusk of their life, youths are also purchasing home with investment objectives.
Mentioned below are some of the major parameters that are influencing the millennials in India to opt for home purchase.
Higher Income
Over the last 2 decades after the opening of economy, job & employment opportunities have quadrupled in India with a large number of MNCs, IT/ ITeS companies & startups mushrooming in the metros. There has been gradual narrowing down between the income of Indian youths & their counterparts working in foreign countries. It is estimated that average income level in the bracket of 25-35 have increased by more than 6 times over the last decade.
With rise in income, these days professionals with an average experience of 5 years can save enough to cover the down payments of houses. Add to this a year or two of Onsite exposure if the individual happens to be from the IT sector & the probability of covering the down payment drastically multiplies.
Great Investment
Prudent Investment is also a principal force behind purchasing homes. With interest rates on Fixed Deposits being less than the average rate of inflation these days & the uncertain nature of the Indian stock markets, Real Estate becomes a good platform to park savings.
Interestingly the soaring rents in major Indian metros are also making the millennials to understand the financial aspect of having a home. Once the possession is given, owning a home can save from paying hefty rentals that could be eventually channelized into shelling out the EMIs.
To further capitalize on the same many leading developers in India are coming with the the idea of subvention scheme in which buyers have to pay their EMIs only after the possession of home.
Proximity to Work Station
The millennials generally prefer proximity to their workstations so that they do not have to travel much & can utilize the spare time on their hobbies & entertainment. Understanding the same, developers are coming up with gated communities in proximity to the IT & business parks. It could be seen that large residential establishments have been developed near major Indian IT markets such as Hinjewadi, Kharadi, Whitefield & Electronic City etc.
Smaller Units & Economical Price
Market researches generally indicate that millennials prefer smaller units of 1-2 BHK- Generally falling in the range of 40-70 lacs. The benefit of smaller units is that it does not only involve lesser price but are also very convenient in terms of maintenance. Since mostly young families these days, consist of wife & husband due with both working, time is a scarce resource. Hence smaller units are preferred more. Among bachelors, the popularity of studio units are also catching up fast. Likewise the millennials also prefer gated communities as it can ensure more safety.
Hedge against Future
Some millennials also fear the fact that with skyrocketing prices of properties especially in the central parts of the city, it is wiser to own a home at an early stage. Due to rising property prices many youths also look for houses in the suburban locations of the city that are comparatively more cost effective.
