Young Buyers Drive India's Housing Market: Average Homebuying Age Drops to Early 30s

India’s housing landscape is witnessing a structural shift as younger buyers are stepping into the market much earlier than before.

From once being a decision made in the late 40s, the average homebuying age has now moved to the early 30s, according to Shobhit Agarwal, CEO of ANAROCK Capital. He attributes this to rising disposable incomes, easier access to credit, longer EMI tenures, and the growing aspiration among millennials and Gen Z to own homes rather than wait decades.

This trend is reshaping demand across metros as well as emerging cities. Shobhit Agarwal, CEO of ANAROCK Capital, highlights the impact of rising disposable incomes, easier access to credit, and the growing aspiration among younger generations to own homes.

Infrastructure development has played a crucial role in this shift. The government's large-scale infrastructure projects, such as the construction of new airports, expressways, and improved road networks, have not only benefited big cities but also smaller towns. For instance, the second airport in Goa has neutralized the ups and downs of seasonality, ensuring a steady flow of visitors throughout the year. Similarly, the expressway from Delhi to Dehradun has led to a surge in tourism and local economic activity.

Commercial hubs are primarily concentrated in major cities like Delhi, Mumbai, and Bangalore, with smaller but significant markets in Chennai, Hyderabad, Pune, Ahmedabad, and Kolkata. The development of these commercial centers has a trickle-down effect on residential demand, leading to more residential projects, schools, hospitals, and entertainment facilities.

Post-COVID, the demand for luxury housing has also increased. With the stock market performing well and more disposable income available, people are more willing to spend on high-end properties. The emotional barrier of staying in ancestral homes is breaking down, and there is a growing preference for newer, more modern communities with better amenities.

The average age of buying a first home has moved significantly down, from the late 40s to the early 30s. This shift is partly due to banks offering longer EMI tenures, making it more affordable for younger buyers. Shobhit Agarwal hopes that this trend will continue, with the average age of homebuying moving into the 20s in the future.

Overall, the housing market is seeing a positive transformation, driven by younger buyers and supported by improved infrastructure and economic conditions.