Youngsters’ immense interest in buying their own home!

In the past, the mindset was to get a job, then think about marriage, children, and buying a house after retirement. However, the current generation has changed that approach. Today’s youth are purchasing homes as soon as they get a job. The number of young people buying homes in major metro cities across India, including Hyderabad, is gradually increasing.

The thoughts and preferences of the current generation are changing. Job opportunities are emerging even while education is still ongoing. As a result, young people are now opting to buy their own homes as soon as they get a job. With good jobs and high salary packages, they are easily purchasing homes through bank loans. Due to stable job opportunities, there is growing interest in real estate investments. In 2018, 28% of homebuyers were in the 25-35 age group, and last year, this increased to 37%. According to JLL India, by 2030, the share of young people buying homes will reach 60%.

In the past, retired employees, senior citizens, and affluent groups were more inclined to buy homes and invest in the real estate sector. Now, banks and financial institutions are competing to provide home loans to young homebuyers. These loans are being offered with faster approval processes and lower interest rates. Platforms offering partial ownership such as crowdfunding and property sharing are providing opportunities for limited investments in the real estate sector. As a result, today’s young customers are able to purchase expensive, luxurious properties with minimal initial investment, without the need for large down payments.

In IT hubs like Bangalore and Hyderabad, young IT professionals are having a significant impact on the real estate market. According to a JLL report, their preference for 2BHK apartments priced between Rs 80 lakhs and Rs 1 crore is gradually increasing. With the work-from-home culture established due to the pandemic, young employees no longer feel the need to live close to their office areas, as they no longer have to commute daily. As long as good transportation facilities are available, they are showing interest in purchasing properties even if they are located a bit farther from the city centre. Additionally, they believe they can get larger homes with better amenities in suburban areas at the same price as smaller properties in prime locations. However, they prefer homes that feature environmentally friendly elements like greenery, energy and water-saving projects, solar panels, and rainwater harvesting.

With the work-from-home culture established during the pandemic, young professionals no longer need to sit in an office to work. Now, they prioritise lifestyle over their job, seeking the flexibility to live in areas they like. Rapid urbanization, technological innovations, and changing consumer preferences have brought shifts in homebuyers’ behaviour. As a result, secondary and tertiary cities are emerging as key growth centres. According to a JLL estimate, the percentage of urban homeowners, which was 65% in 2020, is expected to increase to 72% by 2025. Affordable home loans and the rising preference of young buyers for residential communities are major factors contributing to this growth.