Homebuyers' lot gets younger by the day

A study by Indian real estate industry has revealed that there is a strong trend of the average age of home buyers in India reducing from 39 in 2007 to 30 in 2010. The ageof repeat buyers has increased on an annual basis from 41 in 2001 to 49 in 2010.

Rising incomes and easy availability of finance are major reasons for this phenomenon.

Nitin Deogaonkar, MD of Home Buyers Combine, said, “About five years ago, there were just 2 or 3 per cent of youth who actually bought properties, but now the figure has multiplied four to five times. Now, I would say about 20 to 25 % of buyers are in the age group of 25 to 30.’’

According to National Association of Realtors, in 2007, the age of first time homebuyers fell to 31 and from 2008 to 2010, the typical age has remained at 25 to 30.

Earlier, people were not aware of legal and technical aspects whilepurchasing a house, but now, youths are comfortable with buying property.

Aniruddha Bhagwat, managing partner of Ideosphere Consulting, said, “When I started working at 24, I had to invest somewhere and hence, I decided to buy a property merely for investment. At 26, I am selling my home in Moshi at double the price and looking for a second property in Pune city.’’

Another young marketing professional Swastik Nigam who bought a property in Pune at 24, said, “Property is always a good investment option and hence, I decided to buy one. And now I am reaping the benefits because I am getting more returns on my investment.’’

The reasons for changes in this trend cited by various builders are defragmentation of families due to migration of people to cities for greater job opportunities, changes in preferences of people from renting to owning a house and non-sustainable agreements between owners and tenants.

Santosh Patil, marketing manager of Raj Heramb Properties, said, “Eighty-five per cent of our buyers are in the age group of 30-40. Also, we have been noticing that with growing income levels, many individuals prefer buying a property rather than staying in a rented house.’’

Aditya Javdekar, managing director of Javdekar Eco Homes said, “There has been a lifestyle and attitudinal change which has been observed in first time young home buyers today. With the IT boom and increasing income levels, it has changed the entire spectrum of the real estate market. Buyers now want to settle in Pune and hence, we see an increase in the number of buyers.’’

Source: www.dnaindia.com