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Real estate becomes a preferred investment choice for young buyers

Priya Singh | 2024-01-02

Despite the difficulties posed by high inflation, escalating property costs, and interest rate hikes in the past year, 67 per cent of participants prefer buying property for their use, indicating a strong demand from end-users.
In the ever-evolving investment landscape, real estate has become the preferred choice for investors while gold, once a haven, is losing its luster. A recent Anarock Consumer Sentiment survey revealed that in the first half of 2023, over 60 per cent respondents expressed an inclination to invest in real estate, which is a 3 per cent increase compared to the previous survey. It indicates that investors are seeking tangible and long-term assets due to growing financial market uncertainty.
The persistent rise in inflation rates has a significant impact on people’s financial stability. According to the survey, 66 per cent respondents in the first half of 2023 experienced a reduction in their disposable income, which is an increase from the 61 per cent recorded in the same period in 2022. Despite the difficulties posed by high inflation, escalating property costs, and interest rate hikes in the past year, 67 per cent of participants prefer buying property for their use, indicating a strong demand from end-users. However, the survey also highlights that increasing inflation may limit people’s ability to make home-buying decisions.
Commenting on the same, S K Narvar, Group Chairman, Trident Realty, says “The housing market is upbeat backed by positive sentiments and an increased sense of pride in home ownership. The market survey highlights that real estate is the most preferred investment asset class amongst people. The desire for luxurious living, work-life balance, well-being, and future stability have prompted buyers to invest in real estate. Besides, steady home loan rates coupled with healthy economic growth, and other favourable factors are fuelling housing growth across cities.”
He further added, “Interestingly, homebuyers seeking luxury living and comfort are on the constant lookout for big and spacious homes nestled in serene, pollution-free locations. Their preference to go beyond the metropolis has brought a considerable focus on tier 2 locations like Panchkula. Developing the city’s modern infrastructure, coupled with its pristine natural surroundings, offers a distinctive fusion of luxury, practicality, and convenience, tailored to the needs and desires of homebuyers yearning for plush amenities in their homes. We expect new age and end-users to dominate the housing market ahead and maintain healthy growth momentum.”

The younger generation is having an impact on the real estate industry. A large portion of millennials and Gen-X respondents, 52 per cent and 35 per cent, respectively, is planning to use their investment earnings from different asset classes to buy homes in the future. This shows their confidence in real estate as a way to secure their financial future and their desire to own homes.
Navdeep Sardana, Founder, Whiteland Corporation, says “Real estate undoubtedly remains a top choice for investment, with a growing trend towards purchasing properties for personal use as well as high returns, driven by the desire for stability in an uncertain economic scenario. This inclination towards homeownership is particularly prominent amongst Millennials and Generation X. The alluring skylines of Gurugram, showcasing a blend of modernity and urban comfort, have become a magnet for real estate investment. The city’s evolving landscape offers not just a property but a promise of a secure future, making it an attractive prospect for potential investors seeking both a dwelling and a sound investment.”

The housing market is constantly changing and adapting to the preferences of homebuyers. Recent surveys show that despite past rate hikes and increasing property prices, 59 per cent of buyers are still looking for mid-range and premium homes priced between Rs 45 lakh and Rs 1.5 crore. This indicates a positive trend with a 10 per cent increase in demand for homes in this budget category since 2020. 35 per cent of homebuyers prefer Rs 45-90 lakh homes,