Hyderabad: Easy access to loans and well-paying entry level jobs has led to this new breed of home owners.
When Nikhil Rao bagged his first job at the age of 22, he was clear about one thing – invest his hard-earned money in a house. And, at the age of 27, he has bought a 1,100 sqft 2BHK in Madhapur and proud about his investment.
Like Nikhil, many youngsters in the age group of 25 years to 35 years are looking at buying a house as a safe investment option rather than investing in gold or other saving instruments.
“Having a house of my own meant stability, peace of mind, and ownership, which no other saving instrument gives. It is also a safe investment option and I don’t have the problem of paying rent. I have a secure and well-paying job and with work from home and hybrid work culture becoming the norm, the house is the place where I will spend most of my time,” says Nikhil Rao, who works in a large MNC in the city.
He is one among the increasing number of youngsters for whom acquiring a property/dream home is a priority. He adds, “I had also decided that I would first buy a property and then get married.”
Young millennials and GenZs are investing in houses ranging from a 2BHK, service apartments, villas to even farmhouses – depending on their spending capabilities.
Easier access to loans, low-cost EMIs, and booming real estate along with higher salaries at entry-level and mid-level has led to this trend.
About a few years ago, the earlier generation used to wait till their late 40s or early 50s to buy their own home, but experts suggest that this trend has changed drastically. For many, a dwelling of their own used to be a retirement project.
“Buying a house was always an option after you turned 50, but now it has become so easy to buy a property,” points out says G Ram Reddy, national vice-president, Credai (Confederation of Real Estate Developers Association of India).
If one has a job and a pay slip, then many banks are ready to give a loan of up to 90 per cent. “So, instead of getting into the hassle of paying rent, youngsters prefer to pay a little extra for the EMIs and enjoy the benefits of owning a house,” he says.
The booming IT sector in Hyderabad also contributed to this trend wherein huge hikes in the range of 30 per cent to 150 per cent led to high disposable income. With limited avenues, many people were looking towards owning land or a house in Hyderabad.
Knight Frank India’s Hyderabad branch director, Samson Arthur says the earlier millennials were of the view that they would go for a rental property to avoid making heavy investment and keep it asset-light.
“However, this opinion has changed in the post-pandemic world wherein it has made people realise that homes are dear and it is more than just an investment. For uber-luxury, they invest in a farmhouse so that they can get away from the city life and the price-conscious will look at a service apartment or 2BHKs with a study room,” he says.