The era is gone when buying a home was a plan for the near-retirement segment; today, by the age of 25, the dream of owning a home already sparkles in the eyes of the youth. The reins of the Indian property market are now firmly in the hands of the young. The latest report from 'Basic Home Loan,' titled 'How India Finances Its Housing Dreams,' unveils a surprising statistic. According to this report, Millennials and Gen-Z now account for nearly 90-95% of residential property purchases in India.
This report is based on feedback from over 7,400 current and future homebuyers. The most intriguing fact is that these young buyers, instead of queuing at banks, are becoming homeowners with just a click on their smartphone.
For those under 40, opting for an online home loan is not a compulsion but a preferred choice. The report highlights that about 72% of this age group find it safer and easier to apply digitally rather than visiting a bank branch.
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Digilocker, the Hero of the New Age
If anyone has entered like a superhero in this whole transformation, it's Digilocker. According to the report, about 80% of users relying on Digilocker for home loan applications are aged 35 or younger. Truth be told, with paperwork hassles gone and swift loan approvals, the dream of buying a home is not only stress-free but also more transparent. Atul Monga, CEO of Basic Home Loan, also believes that this digital preference of the youth is giving the entire banking and housing ecosystem a new and contemporary shape.
Smaller Cities Outperform Metropolises
We often think that the rush to buy homes is limited to major cities like Delhi or Mumbai, but the truth is that Tier-2 and Tier-3, or smaller cities, are now leaving others behind in this race. Excellent internet and superb digital facilities have given the youth in smaller towns the courage and ability to dream big. Especially in these regions, there is a significant rise in demand for homes priced between 1.1 to 2 million rupees, with home loan reach observed at almost 74%.
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Budget and Trust - Big Challenges
Despite digital progress, some issues still trouble buyers today. About 76% of survey participants believe excessive paperwork and improper sales practices are major problems. When it comes to budget, low-income families are inclined to allocate about 25% of their income to EMI, ensuring their other needs aren't impacted. In contrast, buyers in major cities are willing to risk up to 40% of their earnings on EMI. However, some youth still hesitate to buy a house due to long-term financial commitments and the large down payment requirements.
