Property buyers getting younger

There's a new crop of buyers serenading the real
estate market. This younger lot is stepping in as end-users who are consciously
eyeing investments in property as an essential part of their gameplan. And
developers too are innovating to meet the increasing demand from the 'new'
consumers in their mid 20s and early 30s.

We home in on the latest trend embracing the realty
sector. Twenty-seven-year-old Chartered Accountant Rajat Malhotra has been
meeting real estate agents for the last four months. He wants to buy a property
in Delhi NCR and has been looking at various deals to zero in on the best one.
"Some of my friends have already invested in property and that got me interested
too. I started doing some surveying around especially for areas closer to my
workplace.

It can be a great
convenience to my daily schedule and I don't have to stay on rented
accommodation then," says Rajat. Housing finance companies on their part feel
that when it comes to a younger borrower, the lender can take a higher risk
exposure as a younger borrower has a long time frame to repay the loan. Says
Kapil Wadhawan, vice chairman and MD, Dewan Housing Finance Limited (DHFL), "The
profile of the borrower is definitely getting younger.

Any institution assesses the credit worthiness of the
borrower while lending i.e., his capability to repay the amount borrowed . To a
certain extent, a younger borrower does have an advantage due to his age as he
still has the possibility to grow in his profession and, also, will have a
continuous flow of income to be able to repay for a longer period."


Global real estate consultancy
Jones Lang LaSalle Meghraj (JLLM) agrees that the average age of buyers has
dropped significantly over the last decade. "It has dropped from 45-32 years and
this new, young breed of property buyers has its collective eyes trained on
stability and upward mobility in the future. On a primary level, young property
buyers tend to choose locations close to their workplaces, so as to reduce
commuting time. On a secondary level, they will buy property at non-work related
locations that will see appreciation in the long run," reveals Anuj Puri,
chairman and country head, JLLM.

Developers recognise this shift in trend and offer
projects that are in sync with the demands of this age group.


"Current architecture designs,
stylized interiors and environmental facilities are certainly impacted by the
choice of youth. Hence developers offer accordingly to suit their modern tastes.
Moreover, the demand is more for houses in the range of Rs 30-60 lakh. This has
benefited realtors with ready market to offer houses in this range," says B P
Dhaka, official spokesperson, Parsvnath Developers.

It's not just about primary home purchases alone. A lot
of people later on opt to buy a second home from an investment point of view
too. And the profile of this lot usually falls in the age bracket of 30-40
years. Says Atul Mehrotra, director, marketing, Uppal Group, "Yes, this too is
the younger generation in question who are looking at real estate from an
investment aspect. Buying a house the second time has become a possibility
especially for those who had bought their first property just before the boom in
the real estate. This leaves them with enough disposable income that they can
direct for another property."

In Mumbai, an upsurge in buyers can be seen in the
30-35 years age group. All thanks to reasonably good returns and a buoyant
economy. Milind Korde, MD, Godrej Properties feels that customers today do not
just seek a home or workspace.

"They look for a lifestyle and a property that offers
the best in terms of location, design and facilities appeals to them. Hence,
offering contemporary designs and amenities is a must." Kolkata-based Hiland
Group feels that clear personal preferences emerge with this new group. Large
format developments is popular with this generation.

"They want all lifestyle facilities within a price
bracket of Rs 30 lakh to Rs 50 lakh as opposed to the more traditional city
centre locations. Rising income levels is stirring more and more younger people
to buy a house of their own," feels Hiland Group MD Sumit Dabriwala.


Another city-based developer,
Merlin Group has products that offer more value additions so that it appeals to
them. "The newGen prefers developing areas like south Kolkata and Rajarhat
instead of totally saturated areas. A change in the buyer's age group has made
us innovate with services like space efficient apartments , broadband
connections, sports arena, gymnasium, music lounges, etc. in our future
projects," says Merlin Group MD Sushil Mohta.

Thirty-five-year-old Abhijit Das who had bought a flat
for himself eight years ago in Kolkata feels that attractive home loan rates,
increased income level and an increase in the number of 'dual-income' families
has led to a growing interest in the realty sector. Das is now actively looking
at a second home investment in the city.

Down south, in Bangalore too the change is evident with
people in their late 20s and early 30s picking up property in the Rs 25-45 lakh
bracket. And when it comes to a second home buy, it is established individuals
in their late 40s who are keen on owning the same. Says Ashok Ganguly, VP-
marketing, Nitesh Estates, "Financing such buys are far more easier today. Banks
and financial institutions lend money to the extent of 90% of the total cost,
making it very easy to own a home."

Agrees Avinash Prabhu of Skyline Construction &
Housing, "A bulk of our buyers are picking up property in the Rs 25-60 lakh
bracket. As far as a second home is concerned, it is done from an investment
standpoint. Most of them continue to buy second homes to rent out the same."


A series of efforts to make the
real estate sector more transparent and organised has also helped in attracting
this new class of end-users . Hence for many of them investing their saved up
booty in real estate seems just the perfect logical step forward to planning a
better future.

http://economictimes.indiatimes.com/Property_buyers_getting_younger/articleshow/2373460.cms