With the passage of time the people perception towards investment has changed a lot. Those people who used to save money to buy property are now buying property first and paying later. It is not only the scene of Bangalore but it is a situation in every metro of India as buyers are becoming younger what they used to be. From bank home loan statistics it is clearly interpreted that property investors turning five year younger on every passage of two year. Most of these buyers are investing on pre launched properties from land developers, which is a strategy to attract buyers by the developers.
Days are changing at a faster pace. In 1990’s one could only imagine that a home buyer would be 50 plus years of age. In 2000’s the picture changed and the average home buyer’s age dropped to 45 plus. Now the average age of the home buyers as noted by the banks from the applicants of home loans stands at 28 plus. Statistics point out that the home buyers’ average age is dropping by five years in every two years. Earlier the home loan tenure of loan repayment provided by banks stood at 15 years and now it is 25 to 30 years. This is the change that is being noted by the real estate and the financial institutions alike.
Why the change?
The realtors remark that earlier, that is before the advent of the IT industries the situation was completely different. People used to save money and then buy and now the situation is they buy and repay later. There has been change in the economic characteristics and affordability of the demography too. People who were born in the mid 1900’s were called midnight children. Most of the middle class had ancestral property. People who were in need of an urban home built it at the end or the middle of their career when they approached 50 years of age. Most of their spouses were also not working women.
The sociologists say that these people’s sons and daughters are now 45 to 50 years of age who were bred up in the traditional industry environment who could only imagine of building a home of their own before 45 plus years of age.
But the people born in the 1980’s had a better luck in terms of education and industrial growth. They were established and started earning higher salaries early in life. Most of their spouses are also an earning member of the family. This gives them an extra liquidity and affordability. Another point that the financial expert makes is the young generation of today have realized that the rate of growth of property prices are also not the same as it was in the 1980’s and 1990’s. So they need to act faster and so they can’t afford to save and buy the property.
The situation in Bengaluru
There is a huge difference in Bengaluru then and now, today it is a place where there are an increasing number of young buyers as there are an increasing number of populations who are in their young age and has succeeded in life early and has affordability in their hands too. Thus the city’s real estate market has been flooded with young home buyers and the age of the home buyers are decreasing day by day. The market watchers opine that not only that the buyers are getting younger day by day but their mindsets are changing as well. The real estate research indicates that the average buyers of Bengaluru are 28 years to 35 years. This has dropped from 45 years of earlier days.
The veteran realtors remark that in tune with the growing demand of the market from the young buyers the real estate land developers also are offering plots and sites in Bengaluru with lucrative offers in competitive prices and with added amenities too. This is attracting the young buyers to go for apartments at young age and more so with the expectation of living better at a young age. The realtors further remark that by the age of 45 years the young buyers of Bengaluru are financially equipped enough to buy at least three properties or at least expand their existing property.
Another trend now watched by the trend watchers is that in this spree of buying homes and properties there is an increased demand of the land and plots for sale with amenities like swimming pool, gymnasium, community centre and many others by the young folks of Bengaluru. The young generation of home buyers also seem to have realized that what they can afford today may not be affordable by them five years hence, remarks the expert realtors.
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