Winning Bizness Desk
Mumbai. India’s housing market is witnessing a generational shift. The average age of buying a home has fallen from 38 to 34 in the last six years, reflecting a sharp change in financial behaviour. Instead of following the old middle-class rule of “save first, buy later,” young earners are choosing to purchase property soon after securing a job. A new survey shows that 74 percent of homes sold in the country are being bought by people below 35 years of age. Notably, 32 percent of buyers are under 25, signalling the growing influence of Gen-Z in the housing segment.
Survey highlights sharp demographic shift
The findings come from a survey titled Ghar Ka Sapna Kaise Poora Karta Hai Bharat conducted by Basic Home Loan, a home loan aggregation and distribution platform. The study covered 23,000 individuals across age groups and income categories. Among respondents, 31 percent reported annual incomes above Rs 50 lakh. The income distribution was as follows:
- 29 percent earned up to Rs 5 lakh annually
- 20 percent earned between Rs 5–10 lakh
- 7 percent earned between Rs 11–20 lakh
- 4 percent earned between Rs 21–35 lakh
- 9 percent earned between Rs 36–40 lakh
Men accounted for 91 percent of respondents, while women made up 9 percent. However, women’s participation in property buying is steadily rising. In 2024, women carried out 1.29 lakh residential transactions in top cities, accounting for 14 percent of total deals.
Higher incomes mean higher emi readiness
The survey shows a clear link between income and EMI commitment. Buyers from higher income groups are willing to allocate up to 50 percent of their annual earnings toward EMI payments. Those earning between Rs 11 lakh and Rs 40 lakh were ready to commit around 40 percent of their income, while individuals earning up to Rs 5 lakh were comfortable paying about 25 percent toward EMIs. Interestingly, 74 percent of home loan customers belonged to the Rs 11–20 lakh income bracket.
Interest rates and speed matter most
Among millennials and Gen-Z, 50 percent identified interest rates as the most critical factor while choosing a home loan. Even minor fluctuations in rates influence their decisions. Loan approval time is another decisive factor. Young buyers prefer banks or digital platforms that process applications within 24 to 48 hours. Digital efficiency is drawing new-age buyers toward online platforms.
Key preferences highlighted in the survey include:
- Competitive and transparent interest rates
- Faster approval timelines
- Clear communication on fees and hidden charges
- Institutional credibility and long-standing reputation
Trust and paperwork remain major concerns
Trust continues to be a defining factor. Many respondents prefer financial institutions that are at least 50 years old and seen as reliable. Among those above 60 years, 33 percent still prefer visiting a physical bank branch for loan processing. Transparency in paperwork and clarity in charges strongly influence institutional credibility.
Paperwork is widely seen as a hurdle. Around 47 percent of rural respondents cited documentation as a key obstacle in securing loans, while 45 percent in metro cities expressed similar concerns. Overall, 76 percent said excessive documentation and misleading promises create major problems in the home loan journey.
Changing advice patterns across age groups
The survey also highlights shifting social influences. Only 9 percent of buyers aged 21–24 said they rely on friends’ advice while taking home loans. In contrast, 14 percent in the 50–60 age group depend on friends’ opinions, the highest among all groups. Among those above 60, 11 percent seek advice from friends before purchasing property.
The data suggests a decisive move toward early asset creation among younger Indians. With rising incomes, digital convenience and structured financing options, home ownership is no longer being postponed. Instead, it is becoming an early milestone in the career path of India’s emerging workforce.
