According to the latest report, it has been revealed that Bengaluru property market has emerged as a favourable residential investment destination among young homebuyers or millennials living in the city. The report also suggests that in the last 10 years, the average homebuyer age has come down to 28 years as compared to 38 years.
In recent years, the ‘Silicon City’ has witnessed an influx of young working professionals who want to make their career in the growing IT/ITes sector, start-up, pharma, biological sciences, and research sector.
This has led to an increase in the demand for residential properties which has created a positive impact on the Bengaluru property market. Seeing this growth, even the real estate developers are focusing on the timely completion of their projects to maintain the demand and supply ratio.
Key factors behind this Growth
- Most of the young professionals have been earning attractive pay packages as compared to the previous generations.
- Today, most of the home buyers want to invest in their dream home at an early age. Reason- Not only, it helps in maintaining finances but also secure their post-retirement period.
- Investing in a home during early professional career helps in easy accessibility of home loans.
- Due to strong government policies like RERA and GST, homebuyer’s confidence in the realty market has boosted like never before. This has led to positive growth in the market.
- The continuous focus on affordable housing is also playing a crucial role in this growth. For instance, most of the young homebuyers prefer to invest in an affordable home where they can also avail subsidies under the PMAY scheme. These homes mainly fall in the range of 40-70 lakhs.
- The report also says that most of the buyers are in the range of 31-40 years. Earlier, this age group ranged from 41-50 years.
- Most of the young homebuyers prefer to invest in 1 or 2 BHK compact homes that also offer them a good resale value.
- Location, connectivity, and background of the developer are also considered by buyers while investing.
- To draw the attention of young homebuyers, developers are also coming up with smart homes or technology-enabled housing units, the report suggests.
- To save themselves from paying high rentals, millennials in Bengaluru, prefer to own an affordable home. For example, the average rental at a premium location is around 20,000-25,000. On the other hand, by paying the same EMI, young working professionals can own a home that is also ready-to-move-in.
- Last but not least, infrastructure developments like the construction of expressways, highways, flyovers, and metro extension for smooth connectivity is also attracting young homebuyers to invest in Bangalore.