Young Buyers Drive India's Housing Market: Average Homebuying Age Drops to Early 30s
India's housing market is experiencing a significant shift as younger buyers, particularly millennials and Gen Z, are entering the market earlier, moving the average homebuying age from the late 40s to the early 30s.
HomebuyingMillennialsReal EstateInfrastructureAnarock CapitalReal Estate NewsSep 26, 2025
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.
Frequently Asked Questions
What is the current average age for buying a first home in India?
The current average age for buying a first home in India has moved to the early 30s, down from the late 40s previously.
What factors are contributing to the younger homebuying trend?
Rising disposable incomes, easier access to credit, longer EMI tenures, and the growing aspiration among millennials and Gen Z to own homes are contributing to the younger homebuying trend.
How is infrastructure development impacting the housing market?
Infrastructure development, such as the construction of new airports, expressways, and improved road networks, is benefitting both big cities and smaller towns, leading to increased demand for housing in these areas.
Which cities are the main commercial hubs in India?
The main commercial hubs in India are Delhi, Mumbai, and Bangalore, followed by smaller but significant markets in Chennai, Hyderabad, Pune, Ahmedabad, and Kolkata.
What is the trend in luxury housing demand?
Post-COVID, the demand for luxury housing has increased due to better economic conditions and more disposable income, with people more willing to spend on high-end properties.
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